In its first-quarter financial report, Renault disclosed a modest 1.8% increase in overall revenue to €11.7 billion, surpassing analysts’ projections of €11.4 billion. This growth was predominantly driven by a surge in revenue from its financing arm, which experienced a 27.9% increase to €1.25 billion, primarily attributed to rising interest rates. Car sales volumes also exhibited a positive trend, escalating by 2.6% compared to the previous year.
However, Renault’s automotive revenue faced a slight 0.7% decline, settling at €10.47 billion. This downturn was primarily influenced by unfavorable exchange rate fluctuations in markets such as Argentina and Turkey, coupled with elevated destocking activities by independent dealers relative to the first quarter of 2023.
Despite the automotive revenue dip, Renault remains optimistic about its sales trajectory, anticipating accelerated growth in 2024. This optimism stems from the upcoming launch of several new models. The French automaker has reiterated its financial objectives for the year, targeting a 7.5% profit margin and a €2.5 billion cash flow forecast, supported by ongoing cost-reduction initiatives.
Commenting on the financial performance, Thierry Piéton, CFO of the Renault Group, emphasized the company’s unwavering commitment to a value-centric commercial strategy. He expressed confidence that the robust order backlog at the end of March, combined with upcoming product launches, will propel sequential growth in the company’s operations. This growth, coupled with continued cost optimization measures, will serve as catalysts for Renault’s financial performance.