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Renault Group: 1st quarter 2022 – A performing business coverage strengthened by a profound line-up renewal

Renault Group: 1st quarter 2022 – A performing business coverage strengthened by a profound line-up renewal

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The Group’s international gross sales amounted to 552,000 automobiles within the 1st quarter of 2022, in a nonetheless very disrupted market context

  • The Group’s international gross sales amounted to 552,000 automobiles within the 1st quarter of 2022, in a nonetheless very disrupted market context.
  • Group income was € 9.7 billion for the quarter, down -2.7% (-0.7% at fixed scope and trade charges1).
  • Renault Group is pursuing its gross sales coverage launched within the 3rd quarter of 2020 and targeted on worth:
  • The Group’s order e-book in Europe on the finish of March was at a 15-year excessive and represented 3.9 months of gross sales.
  • This business coverage is bolstered by the success of its new merchandise, which allows Renault Group to strengthen its management in hybrid and electrical mobility:
    • Renault Arkana recorded greater than 9,000 orders per 30 days within the 1st quarter, 60% on E-TECH model and 60% on the retail channel.
    • Renault Megane E-TECH Electrical is experiencing a promising launch with greater than 10,000 orders in two months, 70% on excessive variations.
    • Dacia Sandero stays the best-selling car to retail prospects in Europe.
    • With greater than 9,000 gross sales in Europe and 20,500 orders recorded within the 1st quarter, Dacia Spring 100% electrical is the twond best-selling electrical car in France.
    • New Jogger guarantees to be a brand new success of the Dacia model with 36,500 orders in 4 months and a 70% combine on excessive variations in Europe.
    • The E-TECH line-up (100% electrical, plug-in hybrid and hybrid automobiles) accounted for 36% of Renault model passenger automotive gross sales in Europe over the quarter, up 13 factors in comparison with the 1st quarter of 2021.
  • The Group is strengthening its competitiveness with extra value discount packages.
  • Renault Group confirms its monetary outlook as introduced on March 23, 2022.
  • Renault Group will current, at a Capital Market Day within the fall of 2022, an replace of its monetary goals and of its technique positioning the Group as a aggressive, tech and sustainable reference participant.

Worth creation is on the coronary heart of Renault Group’s technique and is mirrored within the exercise of the 1st quarter of 2022. Our gross sales on essentially the most worthwhile channels proceed to develop and the Group’s proactive business coverage deployed since mid-2020 is bearing fruit. As well as, the E-TECH line-up is changing into increasingly more profitable. The order e-book, at a file degree, is strengthening and benefiting from our promising and aggressive line-up of latest automobiles.
In a market setting severely disrupted by the battle in Ukraine, the semiconductor disaster and inflation, Renault Group is continuous its restoration and accelerating the implementation of its technique.” mentioned Thierry Piéton, Chief Monetary Officer of Renault Group

Industrial outcomes: first quarter highlights

Renault Group, in a context disrupted by the semiconductor disaster and the battle in Ukraine, bought 552,000 automobiles within the first quarter of 2022, down -17.1% in comparison with the 1st quarter of 2021.

Renault Group is pursuing its gross sales coverage targeted on worth creation, which is resulting in a rise of the combination in essentially the most worthwhile channels. Of the 5 major European international locations (France, Germany, Spain, Italy, United Kingdom), the retail combine represents 69% in comparison with 54% within the 1st quarter of 2021.

The Renault model strengthens its main place in Europe within the electrified market with the E-TECH line-up, which represents 36% of its passenger automotive gross sales, up 13 factors versus the 1st quarter of 2021, in an electrified market at 29% (+8 pts vs 2021). The road-up of hybrids (HEV and PHEV), consisting of Renault Clio, Renault Captur, Renault Arkana and Renault Megane, is up 40% in comparison with the 1st quarter of 2021. Thus, Renault confirms its place as a reference participant in electrical and hybrid mobility.

The renewal of the Dacia line-up is successful, pushed specifically by New Sandero, which stays the best-selling car to retail prospects in Europe and by Duster which has reached 2 million gross sales since its launch. The 100% electrical Dacia Spring posted greater than 9,000 gross sales in Europe within the 1st quarter and is the twond best-selling electrical car in France.

Alpine‘s exercise is pushed, because the starting of the yr, by the launch of the brand new vary of its iconic A110 and information a 67% gross sales enhance within the quarter.

The Group’s order e-book in Europe, already at a file degree on the finish of 2021, continues to develop, and reaches 3.9 months of gross sales as of March 31, 2022. New Spring recorded 20,500 orders within the 1st quarter and New Jogger guarantees to be a brand new success for the Dacia model with a powerful order e-book (36,500 orders in 4 months, with a 70% combine on excessive variations in Europe). As for the Megane E-TECH Electrical, it already has greater than 10,000 orders in two months, 70% on excessive variations. The primary deliveries of Megane E-TECH Electrical shall be in Might for France and in June for the principle European markets.

First quarter income

Within the 1st quarter of 2022, the Group’s income amounted to €9.7 billion, down -2.7% in comparison with final yr. At fixed scope and trade charges[1], the lower was -0.7%.

AVTOVAZ and Renault Russia’s income was €0.9 billion, down -15.7% over the interval, as exercise was strongly impacted from February, 24th by the battle in Ukraine. AVTOVAZ’s contribution amounted to €527 million, a lower of -23.1%. Renault Russia’s income amounted to €367 million, down solely -2.1% because of destocking operations and worth will increase.

Excluding the actions of AVTOVAZ and Renault Russia, the Group’s income was €8.9 billion, down -1.1% and Automotive income was €8.1 billion, down -1.0%. This variation is primarily as a result of following:

The trade fee results, unfavourable at -0.9 factors, are primarily as a result of devaluation of the Turkish Lira and to a lesser extent of the Argentine Peso.

The quantity impact of -8.9 factors is principally defined by the decline within the automotive market in Europe associated to the scarcity of semiconductors, notably affecting Renault model’s gross sales, Dacia being much less uncovered to essentially the most affected suppliers.

The worth impact, optimistic by +5.6 factors, displays the continuation of our coverage specializing in worth over quantity in addition to worth will increase to offset value inflation and the devaluation of some currencies (Turkish Lira and Argentine Peso).

The product combine impact of +2.2 factors displays the launch of Jogger on this quarter and the success of Arkana launched within the second quarter of 2021.

The affect of gross sales to companions was unfavourable by -2.8 factors. It’s primarily the results of the lower in manufacturing of diesel engines and automobiles for our companions, specifically linked to the tip of the Grasp contract for Opel and Trafic for Fiat on the finish of 2021.

The “different” impact confirmed a optimistic contribution of +3.4 factors, notably associated to the restatement of gross sales with buy-back dedication, that are reducing in comparison with the 1st quarter of 2021 and supported by the efficiency of the elements and equipment exercise and Renault Retail Group.

Mobility Providers contributed €8 million to the 1st quarter income.

Gross sales Financing (RCI Financial institution & Providers) posted income of €737 million within the first quarter, down -2.9% in comparison with the primary quarter of 2021, consistent with common performing property (€43.7 billion), which was down -4.7% in comparison with the identical interval in 2021. This lower is as a result of affect of the Group’s dealership stock optimization technique.

The retail enterprise recorded a rise in new financing of 5.4%. The typical quantity financed on new contracts is growing and partially offsets the -9.7% lower within the variety of new contracts associated to the decline of Group’s registrations.

As of March 31, 2022, complete inventories (together with the unbiased community) symbolize 336,000 automobiles (63 days backward gross sales), in comparison with 487,000 automobiles on the finish of March 2021 and are secure in comparison with December 31, 2021.

Views & technique

On March 23, 2022, Renault Group introduced:

  • the suspension of the actions in its manufacturing plant in Moscow and the evaluation of the obtainable choices concerning its stake in AVTOVAZ whereas appearing responsibly in the direction of its 45,000 workers in Russia,
  • updating its monetary outlook for 2022 on account of these choices with:
    • a Group working margin of round 3%;
    • a optimistic automotive operational free money stream.

The market setting stays impacted by the semiconductor disaster. The Group confirms a complete 2022 manufacturing loss estimated at 300,000 automobiles, primarily within the 1st half of the yr.

In a context of sturdy value inflation, the Group is pursuing its business coverage targeted on worth and strengthening its competitiveness with extra value discount packages.

As indicated in the course of the presentation of its FY 2021 outcomes on February 18, 2022, the Group confirms to be forward of its mid-term Renaulution goals and is accelerating the implementation of its strategic plan.

Renault Group will current, at a Capital Market Day within the fall of 2022, an replace of its monetary goals and of its technique positioning the Group as a aggressive, tech and sustainable reference participant.

Renault Group’s consolidated income

Renault Group’s prime 15 markets on the finish of march 2022

Complete Renault Group PC + LCV gross sales by model

  1. As a way to analyze the change in consolidated income at fixed scope and trade charges, Renault Group recalculates income for the present monetary yr by making use of the typical trade charges of the earlier interval and excluding vital adjustments in scope in the course of the interval.
  2. France, Germany, Spain, Italy, United Kingdom
  3. As a way to analyze the change in consolidated income at fixed scope and trade charges, Renault Group recalculates income for the present monetary yr by making use of the typical trade charges of the earlier interval and excluding vital adjustments in scope in the course of the interval.

SOURCE: Renault Group

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