The French manufacturer's turnover jumped by 11.4%, to 46.4 billion euros, and its operating margin doubled, to 2.6 billion euros and 5.6% of turnover , the manufacturer announced on Thursday.

"I think of early 2021, when we had lost 8 billion euros and not many people saw us rebound. I can say today that we have succeeded", launched the group's general manager, Luca de Meo. , during the presentation of these results slightly exceeding forecasts, at the Renault headquarters in Boulogne-Billancourt.

"After governance and financial crises, we entered the Covid period on our knees", continued the leader who arrived in 2020. "We made sacrifices (...) We were at 900 calories (per day) for two and a half years".

The group has straightened its margins by cutting costs, selling its cars at higher prices and limiting discounts.

The brand is also gradually positioning itself on the high end with its latest models, like the Arkana SUV or the electric Mégane, sold for 46,000 euros.

- Price up -

Group sales have almost halved in four years: just over two million vehicles sold in 2022, a quarter of which under the Dacia economy brand.

In a depressed auto market, Renault sales saw a fourth consecutive year of decline in 2022, plunging 5.9% last year, excluding Russia.

The factories have been resized and are no longer in overcapacity, after a global departure plan launched in 2021.

After two years in the red, the manufacturer is approaching breakeven: it recorded a net loss (group share) of 338 million euros in 2022. Its sale of the Russian Lada manufacturer, Avtovaz, decided after the outbreak of the war in Ukraine, notably cost it 2.3 billion euros in accounting charges.

The sale of the Russian Lada manufacturer, Avtovaz, decided by Renault after the outbreak of the war in Ukraine, notably cost it 2.3 billion euros in accounting charges © Yuri KADOBNOV / AFP/Archives

Hybrid and electric sales, which are more profitable, now represent 39% of group registrations in Europe, compared to 4.5% in 2019.

The group now intends to continue this momentum with the launch of 18 new models by 2025, including the electric Kangoo, R5 and Scénic.

A "new energy"

For the first time since 2019, the management will propose the payment of a symbolic dividend, up to 0.25 euros per share.

The idea is to return to a distribution of 35% of net income "in the medium term".

But this will require that Renault, which is still far from the performance of other manufacturers, regains the favor of the rating agencies, specifies the group.

Production improved in the second half of 2022, affected however by shortages of electronic chips and heavy transport problems for new vehicles.

The group's order portfolio in Europe thus remains at a "record" level of 3.5 months of sales, as of December 31, 2022.

Counting on a stabilization of the price of raw materials, and still complicated logistics, Renault aims for 2023 an operating margin greater than or equal to 6% of turnover.

Analysts from Oddo BHF praised "the manufacturer's impressive progress on the operational and financial fronts".

Its prospects for 2023, with an improvement in its profitability in an unfavorable context, are "unique among European manufacturers and are not reflected in its stock market value", say analysts.

After weeks of strong growth, Renault shares posted a slight drop before noon on the Paris Stock Exchange, to 42.84 euros.

The group has launched a hunt for partnerships (20 new ones since 2020) to emerge with its head held high (and without investing too much) from an electrifying but risky transition for the automobile industry: it will cooperate with the Chinese Geely for its engines traditional (in Spain in particular), launch its electric cars on the stock market, but also accelerate with its premium brand Alpine.

An electric Renault Mégane presented at the car brand's factory in Cléon, in Seine-Maritime, on July 5, 2022 © Lou BENOIST / AFP/Archives

"2022 was a turning point, people at Renault have new energy now," concluded De Meo.

© 2023 AFP