Home » 2023 is a historic year for Renault, record revenues and profits

2023 is a historic year for Renault, record revenues and profits

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2023 is a historic year for Renault, record revenues and profits

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Turnaround well underway although, in an increasingly competitive market, much remains to be done. Having reached the end of his mandate, but according to rumors ready for confirmation, the CEO of Group Renault, Luca de Meo, can boast a historic result: from the red of 8 billion euros in 2020 to the net profit of 2.3 billion of 2023, 3 above the result of 2022 although less than market estimates (3.5 billion). Revenues in fiscal 2023 reached 52.4 billion, +13.1% and +17.9% at constant exchange rates compared to the previous year. Operating margin exceeded expectations: 4.1 billion or 7.9% of revenues (versus 5.5% in 2022), up 1.5 billion euros compared to 2022. It was initially expected above 6% and had been revised upwards mid-year, between 7 and 8 percent. Free cash flow also went beyond forecasts: 3 billion, 0.9 more than a year earlier and half a billion above the guidance already revised upwards in June. The transalpine group aims to achieve an operating margin of more than 7.5% in 2024 as well as a free cash flow equal to or greater than 2.5 billion euros.

The dividend boom

And again: a dividend of 1.85 euros will be proposed to the vote of the Annual General Meeting on 16 May compared to 0.25 euros per share for the 2022 financial year (+1.60 euros per share). «The proposed dividend is proof of our confidence in the ability to continue growing», commented the financial director, Thierry Pieton. The challenge remains to relaunch the capitalisation, today at 11 billion. Much less than its European rivals. The one-year p/ea is 2.9, which is worth the bottom position.

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Meanwhile, in 2023, in Europe, the Renault Group can boast two out of the three best-selling vehicles. The Renault brand climbed three positions, from fifth to second place. And in 2024 the product offensive will continue with 10 launches and with the acceleration of cost reduction which, according to the Boulogne-Billancourt company’s expectations, should lead to strong cash generation.

The Group’s global sales increased by 9% compared to 2022 (after nine consecutive years of decline), reaching 2.23 million units. In Europe, sales grew by 18.6% against the +13.9% of the market. Renault is the best-selling French brand in the world, in second place in the European passenger car and light commercial vehicle market. Clio has become the best-selling car in France in 2023, across all sales channels combined and is in third place in Europe.

Renault Rafale, world debut at the Le Bourget air show

Not to be forgotten is Dacia, which ranked eleventh in the European passenger car and light commercial vehicle market, gaining four positions. In the European market for passenger vehicles only, Dacia enters the top 10. Finally, Alpine sales increased by 22.1% compared to 2022.

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