Renault Group has announced record-breaking financial performance for 2024, showcasing impressive results across various metrics as it navigates through market challenges. The French automotive giant reported comprehensive revenue of €56.2 billion, marking a 7.4% increase from the previous year. This growth not only reflects the company’s resilience but also its successful strategic initiatives within the competitive automotive market.
The company achieved its highest ever operating margin at €4.3 billion, which corresponds to 7.6% of total revenue. According to Renault Group’s CEO, Luca de Meo, the results are proof of the solid groundwork established through effective teamwork and innovative practices. "The Renault Group continues to improve operational performance, pursue its strategy, and fully achieve its goals," said de Meo, during the press conference announcing these impressive results.
Despite achieving record revenues, the net result attributable to the group stood at €2.8 billion, up by 21% from the previous year, excluding significant losses associated with its partner Nissan. These losses, amounting to €2.0 billion from the sale and impairment of Nissan shares, underscored the mixed fortunes experienced due to external market conditions impacting Nissan. When inclusive of these factors, the net result drops significantly to just €0.8 billion.
Leaders within the company expressed confidence as they anticipate continued growth. Renault’s free cash flow reached €2.9 billion, outpacing forecasts of at least €2.5 billion, providing strong liquidity even amid uncertainties. De Meo highlighted the resilience showcased by Renault, emphasizing, "We are working on the next chapter. It will be one of profitable growth and investment in innovation." He underscored the importance of adaptability and innovation within the company’s operations.
Renault's performance was underpinned by new vehicle launches, which played a significant role in boosting sales figures. The group successfully launched ten new models and conducted two restyling efforts within the year, significantly contributing to its sales figures with total global sales of 2.26 million units, reflecting moderate growth. The market response was promising, giving the company confidence as they look to expand their electric vehicle (EV) offerings.
Particularly noteworthy is Renault’s partnership with Geely, which has been suggested to take precedence over its relationship with Nissan moving forward. De Meo referred to Geely as "an excellent company working very quickly" and expressed optimism about collaborative efforts moving forward, particularly with plans for localized electric vehicle production, especially focused on low-emission vehicles necessary for compliance with European standards.
Looking forward, Renault has strategized its goals for 2025 with anticipation of maintaining at least 7% operating margin, which includes overcoming impacts from upcoming stringent EU regulations on CO₂ emissions. The CEO elaborated on their approach, stating, "There are many things we can do together with Geely; it is perhaps more 'natural' than our partnership with Nissan." This sentiment reinforces the belief within the company of its unique position within the industry going forward.
The proposal to increase the dividend by 19%, reaching €2.20 per share, emphasizes Renault’s solid financial footing, which will be voted on at the next General Assembly on April 30, 2025. The positive report did not immediately translate to market success, as shares dropped by 4.27% to €49.05, reflecting broader sector challenges and market sentiments.
With Renault’s continued commitment to enhancing its operational flexibility and sustaining the momentum gained from its recent product offensive, the firm is poised for what its leadership describes as "profitable growth and investment". The solid financial performance for 2024 combined with strategic partnerships reinforces Renault's ambitious plans for the future, paving the way for sustained market presence and growth.