Renault Reports Strong Revenue Growth and Record Profitability in 2024
Key Highlights
- Revenue increased by 7.4% to €56.2 billion
- Operating margin reached a record 7.6%, exceeding analysts’ expectations
- Net income declined to €800 million due to the sale of Nissan shares
Performance Drivers
Renault’s strong performance was attributed to its successful new product lineup and cost-cutting measures. Ten new vehicles were launched in 2024, accounting for 24% of sales in the final quarter. The electric Renault 5, marketed as part of the "Renaulution" strategy, exceeded expectations and drove customer interest in Renault dealerships.
Financial Results
Despite the decrease in net income, Renault’s core profitability improved significantly. Without the Nissan share sale, net income would have reached €2.8 billion, a 21% increase. The company’s margin performance was also impressive, with an operating margin of 7.6%.
Challenges and Outlook
While Renault’s performance was positive, it acknowledged potential headwinds in 2025. European CO2 emission regulations (CAFE) could impact revenue by €550 million, leading to discounts on electric vehicles to meet sales targets. The company also maintains its opposition to partnerships with other automakers for compliance measures.
Management Commentary
Renault’s CFO, Thierry Piéton, expressed satisfaction with the results, attributing them to the company’s product strategy and cost reductions. He emphasized that Renault is "stronger than ever" and possesses a solid foundation. CEO Luca de Meo highlighted the "profound transformation" and "collective work" that contributed to the company’s success.
Dividend and Guidance
The board proposed a €2.20 dividend per share, a 19% increase from the previous year. For 2025, Renault expects an operating margin of over 7%, despite the CAFE challenges.
Additional Details
- Electric vehicles accounted for 9% of Renault’s European sales, with hybrids driving demand.
- Renault remains optimistic that CAFE regulations will be revised to alleviate potential impact on its business.
- The company has invested in new technologies, including battery production and hydrogen fuel-cell development.
