Signs of recovery for Renault Groupe in second half

Worldwide
Published:  22 February, 2021

The French automotive manufacturer said its results for the second half of 2020 mark the first step in its recovery, with Group operating margin at 3.5% and positive Automotive operational free cash flow.

Renault Groupe’s sales in 2020 amounted to 2.95 million units, down 21.3% year-on-year, with sales in the second half declining 6.8%. Group revenues declined by 21.7% for full 2020, to €43.5 billion. In the second half of the year, decreased 8.9%. Group operating margin in 2020 was -€337 million (-0.8% of revenues) but was positive at €866 million (3.5% of revenues) in the second half. For full 2020, Group operating income was -€1,999 million but was positive in the second half at €8 million. Net income was -€8,046 million for the full year, and -€660 million in the second half, compared with €19 million in 2019. Negative Automotive operational free cash flow was -€4,551 million after a positive contribution of €1,824 million in the last six months of 2020.

In its outlook, Groupe Renault confirmed its 2023 objectives of Group operating margin above 3% by 2023, cumulative automotive operational free cash flow (2021-23) of about €3 billion, and investments (R&D and capex) at about 8% of revenues by 2023.