Renault Group: H1 2021 Financial Results
PRESS RELEASEJULY 30,
2021 |
2021 first half results
Renault Group is ahead of its
« Renaulution » plan
- Renault
Group should achieve its target of
€2 billion cash fixed cost
reductions one year ahead of
schedule: €1.8 billion have already been achieved
of which €0.6 billion during this first half compared to
2019.
- Strong
positive net
price effect (+8.7
points on the Automotive
excluding AVTOVAZ revenues),
reflecting the implementation of the new commercial policy as part
of “Renaulution”.
- Group
operating margin at 2.8% compared to -6.5% in the
first half of 2020.
- Positive
Automotive (including AVTOVAZ) operating
margin improving by more than
€1.7 billion compared
to the first half of
2020, despite the pandemic
and the
components crisis.
- Global sales
up 18.7% in the first half
of 2021 compared to the
first half of 2020 but still down
-24.2% compared to the first half of
2019.
- Group
revenues up 26.8% at
€23.4
billion.
- Net result
positive at €368
million.
- Automotive
operational free cashflow close
to breakeven
(-€70
million).
- Reduction
of the
Automotive net
debt by €0.8
billion and Automotive liquidity
position at
€16.7 billion at June 30,
2021.
- Despite the
uncertainties in demand, the continuing negative effects of the
components crisis which could lead to a production
loss of about
200,000 units
over the year and rising
raw materials prices,
Renault Group is aiming to reach
a full year
operating margin rate
of the same order as the one of
the first
half.
- In line
with environmental challenges, the Group’s ambition is to achieve
carbon neutrality in Europe by 2040 and
confirms it is on track to meet
its CAFE target in 2021.
Luca de Meo,
CEO of
Renault Group
declared: «
these results are the fruits of our
strategic Renaulution plan, focused on profitability. They mark
only the first step in our turnaround, which should accelerate with
the arrival of the new vehicles in
preparation. I would like to
thank all our employees for their commitment in achieving these
results».
Clotilde
Delbos,
CFO of
Renault Group
declared: «
we have taken an important step in the
restoration of our key
financial
indicators, notably
thanks
to the return
close to breakeven of
our free cashflow this
semester.
Our strong liquidity position allows us to pursue our
recovery with
serenity».
Boulogne-Billancourt, 7/30/2021 – Group
revenues reached €23,357 million, up 26.8% compared to the
first half of 2020. At constant exchange rates and perimeter1,
Group revenues would have increased by 31.8%.
Automotive excluding AVTOVAZ
revenues amounted to €20,339 million, up 29.3% compared to
the first half of 2020. The recovery of the automotive market is
contributing +23.7 points. The implementation of the new commercial
policy, focusing on profitable volumes, led to a positive net price
effect of 8.7 points and a negative « volume
performance » of -8.7 points. The currency effect was negative
-3.9 points mainly linked to the devaluation of the Argentinian
peso, the Russian Ruble, the Turkish lira and the Brazilian real.
The product mix effect is positive by +2.9 points, thanks to the
success of the launch of Arkana which marks the brand's come back
in the C-segment, and to the performance of light commercial
vehicles.The “Others" effect, positive by +6.8 points, came from
the increase in the contribution of parts and accessories and the
recovery of the network business, which was heavily impacted by the
confinement measures in the first half of 2020.
The Group recorded a positive
operating margin of €654 million representing 2.8%
of revenues compared to -€1,203 million in the first half of
2020.
The Automotive excluding AVTOVAZ
operating margin was up +€1.6 billion to -€41 million.
Volume and sales to partners effect had a positive impact of €487
million. Mix/price/enrichment effect was positive €599 million
thanks to the impact of the new commercial policy in Europe and
price increases in emerging countries to cover forex impact in the
first place. The “productivity” effect (purchasing, warranty,
R&D, manufacturing and logistics, G&A) was positive €219
million notably thanks to the performance of purchasing (€143
million). Currencies and raw materials weighed respectively for
-€70 million and -€76 million.The “Others" effect amounted to +€454
million explained notably by the impact of the recovery of the
dealers’ business and the aftersales activity.
The operating margin of AVTOVAZ
amounted to €118 million up +€120 million, mainly reflecting the
increase in volumes and prices compared to the first half of
2020.
Sales Financing contributed
€593 million to the Group operating margin compared with €469
million in the first half of 2020. This increase is mainly due to
the improvement in the cost of risk. The total cost of risk reached
0.16% of the average performing assets compared to 0.99% in the
first half 2020 reflecting the return to normal market conditions
and the favourable update of the provisioning at the end of June
2021. Operating expenses represented 1.35% of average performing
assets compared to 1.29% in the first half of 2020. This increase
is explained by the sharp drop in average network performing assets
in connection with the strategy of optimising vehicle stocks.
Other operating income and
expenses stood at -€83 million mainly explained by
provisions for restructuring costs (compared to -€804 million in
the first half of 2020).
After taking into account the other operating
income and expenses, Group operating income came
to €571 million compared with -€2,007 million in the first half of
2020.
Net financial income and
expenses amounted to -€163 million, compared with -€214
million in the first half of 2020.
The contribution of associated
companies came to €160 million, compared with -€4,892 in
the first half of 2020. It is worth noting that Nissan contribution
in the first half 2020 included -€4,290 million of impairments and
restructuring costs (including -€1,934 million of IFRS
restatements).
Current and deferred taxes
represented a charge of -€200 million compared with a charge of
-€273 million in the first half of 2020.
Net income reached €368 million
and net income, Group share totalled €354 million
(€1.30 per share compared with -€26.91 per share in the first half
of 2020).
Automotive operational free cash
flow was negative at -€70 million after taking into
account -€302 million of restructuring expenses, a positive free
cash flow for AVTOVAZ of €294 million and a negative impact of the
change in working capital requirement for -€410 million. Cash flow
excluding AVTOVAZ and restructuring expenses amounted to €1.8
billion (compared to €22 million in the first half of 2020).
Investments in the first half of 2021 amounted to €1.5 billion
compared to €2.5 billion in the first half of 2020.
At June 30, 2021, total
inventories (including independent dealers) represented
427,000 vehicles compared with 547,000 at the end of June 2020.
The Automotive activity at June
30, 2021 held €16.7 billion of liquidity reserves.
The Automotive net debt stood at €2.7 billion at
June 30, 2021 down -€0.8 billion compared to the first half of
2020.
2021 Outlook
Despite the uncertainties in demand, the
continuing negative effects of the components crisis which could
lead to a production loss of about 200,000 units over the year and
rising raw materials prices, Renault Group is aiming to reach a
full year operating margin rate of the same order as the one of the
first half.
Renault Group consolidated results
In millions
euros |
H1 2019 |
H1 2020 |
H1 2021 |
Change H1 2021/
H1 2019 |
ChangeH1 2021/
H1 2020 |
Group revenues |
28,050 |
18,425 |
23,357 |
-16.7% |
+26.8% |
Operating margin% of
revenues |
1,6545.9% |
-1,203-6.5% |
6542.8% |
-1,000-3.1
pts |
+1,857+9.3
pts |
Other operating income and expenses |
-133 |
-804 |
-83 |
+50 |
+721 |
Operating income |
1,521 |
-2,007 |
571 |
-950 |
+2,578 |
Net financial income and expenses |
-184 |
-214 |
-163 |
+21 |
+51 |
Contribution from
associated companies |
-35 |
-4,892 |
160 |
+195 |
+5,052 |
o/w : NISSAN |
-21 |
-4,817 |
100 |
+121 |
+4,917 |
Current and
deferred taxes |
-254 |
-273 |
-200 |
+54 |
+73 |
Net income |
1,048 |
-7,386 |
368 |
-680 |
+7,754 |
Net income,
Group share |
970 |
-7,292 |
354 |
-616 |
+7,646 |
Automotive operational free cash flow |
-716 |
-6,375 |
-70 |
+646 |
+6,305 |
Additional information
The condensed half-year consolidated financial
statements of Renault Group at June 30, 2021 were reviewed by the
Board of Directors on July 29, 2021. The Group’s statutory auditors
have conducted a limited review of these financial statements and
their half-year report will be issued shortly. The financial
report, with a complete analysis of the financial results in the
first half of 2021, is available at www.group.renault.com in the
Finance section.
About Renault GroupRenault Group is
at the forefront of a mobility that is reinventing itself.
Strengthened by its alliance with Nissan and Mitsubishi Motors, and
its unique expertise in electrification, Renault Group comprises 5
complementary brands - Renault, Dacia, LADA, Alpine and Mobilize -
offering sustainable and innovative mobility solutions to its
customers. Established in more than 130 countries, the Group has
sold 2.9 million vehicles in 2020. It employs more than 170,000
people who embody its Purpose every day, so that mobility brings
people closer. Ready to pursue challenges both on the road and in
competition, Renault Group is committed to an ambitious
transformation that will generate value. This is centred on the
development of new technologies and services, and a new range of
even more competitive, balanced and electrified vehicles. In line
with environmental challenges, the Group’s ambition is to achieve
carbon neutrality in Europe by 2040.
https://www.renaultgroup.com/en/
Press
Contact
Delphine DUMONCEAU +33 (0)6 09 36 40
53delphine.dumonceau-costes@renault.comRié YAMANE+33 (0) 6 03 16 35
20rie.yamane@renault.com
1 In order to analyze the change in consolidated revenues at
constant exchange rates, Renault Group recalculates revenues for
the current period by applying the average exchange rates of the
previous period.
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