Despite a troubled context, Groupe Renault achieved its targets, revised in October, with a 4.8% Group operating margin and a positive Automotive operational free cash flow.
- Sales at 3.8 million units, down -3.4%.
- Group revenues down -3.3% to €55,537 million. At constant exchange rates, revenues would have been down by -2.7%.
- Group operating margin of €2,662 million (4.8% of revenues), down -€950 million compared to 2018.
- Group operating income at €2,105 million compared to €2,987 million.
- Net income of €19 million compared to €3,451 million. Beyond the fall in the Group operating income, this decline came mainly from lower associated companies’ contribution, down -€1,730
- million and a charge of deferred tax in France for -€753 million.
- Positive Automotive operational free cash flow of €153 million.
Groupe Renault, despite a troubled year, has been able to achieve results in line with the revised guidance. I want to thank all employees for their efforts and commitment that allowed to achieve this result. Visibility for 2020 remains limited due to expected volatility in demand, notably in Europe because of the CAFE regulation and the possible impacts of the Corona virus. Nevertheless, the strengthening of the top management team, the Alliance revival and new models’ success make me deeply confident in our ability to lead the Group’s turnaround, commented Clotilde Delbos, Acting Chief Executive Officer of Renault.
Boulogne-Billancourt, February 14, 2020:
Group revenues reached €55,537 million (-3.3%), including €3,130 million for AVTOVAZ (+3.0%). Excluding currency impact, Group revenues would have been down -2.7%.
Automotive excluding AVTOVAZ revenues decreased -4.2% to €49,002 million.
This decline was due to a negative volume effect of -1.4 points notably linked to lower sales in Argentina, Turkey and Algeria.
Sales to partners were down -3.4 points due to lower vehicle production for Nissan and Daimler, as well as the decline in demand for diesel engines in Europe and the sharp drop in our CKD business in China and the end of this activity in Iran.
The currency effect, negative by -0.7 points, was mainly due to the sharp devaluation of the Argentinian peso and the Turkish lira.
The price effect, positive by +1.7 points, stemmed from efforts to offset these currency devaluations and price increases in Europe, notably related to regulatory costs. Since the fourth quarter, the price effect has benefited from a more ambitious pricing policy, particularly in Europe with New Clio.
The Group’s operating margin amounted to €2,662 million and represented 4.8% of revenues compared to 6.3% in 2018.
Automotive excluding AVTOVAZ operating margin was down -€920 million to €1,284 million, which represented 2.6% of revenues compared to 4.3% in 2018.
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