The Renault Group needs to reach its goal of reducing fixed cash costs by € 2 billion a year earlier than planned. It has already reached € 1.8 billion and in the first half of the year it has reached € 600 million compared to 2019.
- The Renault Group needs to reach its goal of reducing fixed cash costs by € 2 billion a year earlier than planned. It has already reached € 1.8 billion and in the first half of the year it has reached € 600 million compared to 2019.
- Strong positive net price effect (+8.7 points for vehicles excluding AVTOVAZ revenue), reflecting the implementation of new commercial policies as part of “Renaulution”.
- The Group’s operating margin was 2.8%, compared to -6.5% in the first half of 2020.
- Despite the pandemic and parts crisis, the operating margin of automobiles (including AVTOVAZ) improved by more than € 1.7 billion compared to the first half of 2020.
- Global sales in the first half of 2021 increased by 18.7% compared to the first half of 2020, but still decreased by -24.2% compared to the first half of 2019.
- Group revenues increased 26.8% to € 23.4 billion.
- Net performance was positive at 368 million euros.
- Free cash flow for automobile operations near the break-even point (-70 million euros).
- As of June 30, 2021, automobile net debt decreased by € 800 million and automobile liquidity position decreased to € 16.7 billion.
- The Renault Group has comparable full-year operating margins despite uncertain demand, annual production losses of about 200,000 units, and the ongoing negative impact of the parts crisis, which could lead to soaring raw material prices. I am aiming to achieve it. As one of the first half.
- In line with environmental issues, the Group’s ambition is to reach carbon neutrality in Europe by 2040, confirming that it is on track to reach its CAFE goals in 2021.
These results are the result of a strategic rehabilitation plan focused on profitability. They are only the first step in our turnaround and should accelerate with the arrival of new vehicles in preparation.Declared to thank all employees for their efforts to achieve these results. Lucade Meo, CEO of the Renault Group.
We have taken an important step in the recovery of key financial indicators, especially thanks to returns near the break-even point of the net cash flow this semester.It was declared that our strong liquidity position allows us to calm down and pursue recovery. Renault Group CFO, Crotilde del Boss.
Boulogne-Billancourt, July 30, 2021 – Group revenue It reached € 23,357 million, an increase of 26.8% compared to the first half of 2020.At constant exchange rates and boundaries1, Group revenue will increase by 31.8%.
Automobiles excluding AVTOVAZ revenue It reached € 20,339 million, an increase of 29.3% compared to the first half of 2020. The recovery in the automobile market has contributed +23.7 points. The implementation of a new commercial policy focused on profitable volume resulted in a positive net price effect of 8.7 points and a negative “volume performance” of -8.7 points.
The impact of the exchange was minus 3.9 points, mainly related to the devaluation of the Argentine peso, Russian ruble, Turkish lira and Brazilian real.
Thanks to the successful launch of the Arcana, which indicates that the brand has returned to the C segment, and the performance of light commercial vehicles, the product mix effect is +2.9 points plus.
The “Other” effect increased by +6.8 points due to the increased contribution of parts and accessories and the recovery of the network business, which was significantly affected by the containment measures in the first half of 2020.
NS group Record positive Operating income € 654 million is 2.8% of revenue, compared to € -203 million in the first half of 2020.
NS Automobiles excluding AVTOVAZ operating income It increased by € 1.6 billion to € 41 million.
The impact of sales volume and sales to partners had a positive impact of € 487 million.
The mix / price / enrichment effect was a positive € 599 million, thanks to the impact of new commercial policies in Europe and rising prices in emerging markets to cover the impact of foreign exchange in the first place.
The “productivity” effect (purchase, warranty, R & D, manufacturing and logistics, G & A) was positive by € 219 million, especially thanks to the purchase record (€ 143 million).
The weight of the currency and raw materials was -70 million euros and -76 million euros, respectively.
The “other” impact was explained in particular by the dealer’s business recovery and after-sales activity, reaching +454 million euros.
NS AVTOVAZ operating income It increased by € 118 million to € 120 million, mainly reflecting the increase in quantity and price compared to the first half of 2020.
Sales finance The Group’s operating income contributed € 593 million, compared to € 469 million in the first half of 2020. This increase is primarily due to improved risk costs. Total risk costs reached 0.16% of average performance assets, compared to 0.99% in the first half of 2020. This reflects a return to normal market conditions and a successful update of provisioning at the end of June 2021. Operating expenses averaged 1.35%. Performance assets compared to 1.29% in the first half of 2020. This increase is explained by the sharp decline in average network performance assets associated with vehicle inventory optimization strategies.
Other operating income and expenses It was € 83 million, mainly explained by the provision for restructuring costs (compared to € 804 million in the first half of 2020).
After considering other operating income and expenses Group operating income It reached € 571 million, compared with € 20,007 million in the first half of 2020.
Net financial income and expenses It reached 163 million euros, compared to -214 million euros in the first half of 2020.
NS Contribution of affiliated companies It reached 160 million euros, compared to -4,892 euros in the first half of 2020. It is noteworthy that Nissan’s contributions in the first half of 2020 included an impairment of € 4,290 million and restructuring costs (including an IFRS amendment restatement of € -1,934 million). ..
Current and deferred tax It represents a cost of -200 million euros compared to a cost of -273 million euros in the first half of 2020.
net income Reached a net profit of 368 million euros, Group share A total of € 354 million (€ 1.30 per share compared to € -26.91 per share in the first half of 2020).
Free cash flow for automobile operation -At minus 70 million euros, after taking into account the restructuring costs of € 302 million, the positive free cash flow of € 294 million for AVTOVAZ and the negative impact of changes in working capital requirements of €-410 million. did. Excluding AVTOVAZ and restructuring costs, cash flow was € 1.8 billion (compared to € 22 million in the first half of 2020). Investment in the first half of 2021 was € 1.5 billion, compared with € 2.5 billion in the first half of 2020.
June 30, 2021 Total inventory It represents 427,000 vehicles compared to 547,000 at the end of June 2020 (including independent dealers).
NS Automotive activity Owns € 16.7 billion as of June 30, 2021 Liquidity reserve.. NS Car net debt As of June 30, 2021, it was € 2.7 billion, a decrease of € 800 million compared to the first half of 2020.
The Renault Group has comparable full-year operating margins despite uncertain demand, annual production losses of about 200,000 units, and the ongoing negative impact of the parts crisis, which could lead to soaring raw material prices. I am aiming to achieve it. As one of the first half.
1 The Renault Group recalculates revenue for the current period by applying the average exchange rate for the previous period in order to analyze changes in consolidated income at a constant exchange rate...
Source: Renault Group
https://www.automotiveworld.com/news-releases/renault-group-is-ahead-of-its-renaulution-plan/ The Renault Group is ahead of its «Renault Revolution» plan