Renault Group Reports: Doubled Profitability, Record Free Cash Flow, Resumption of Dividend, Anticipation of Additional Performance Enhancement in 2023
Renault Group, the French automobile manufacturer, has announced a series of significant financial achievements and initiatives for the year 2022.
The company reported a record Automotive operational free cash flow of €2.1 billion, a 11.4% increase in Group revenue to €46.4 billion, and a Group operating margin of €2.6 billion, up from €1.4 billion in 2021. These impressive figures reflect Renault's successful navigation of the global economic challenges faced in the past year.
In a move to reward shareholders, Renault Group has announced a dividend of €0.25 per share, to be paid in cash. The ex-dividend date is scheduled for May 17, 2023, with a payment date set for May 19, 2023.
Renault Group has also been active in the bond market, issuing two Samurai bonds in 2022: a 3-year bond for €560 million and a bond maturing in 2026 for €1.4 billion. The company also made an early repayment of €1 billion and reimbursed €1 billion for the mandatory annual repayment of a loan in 2022.
The company's financial position has significantly improved, with the automotive financial position standing at €549 million positive on December 31, 2022, an improvement of €1.6 billion compared to the adjusted position in 2021. The liquidity reserve at the end of 2022 was €17.7 billion, up €1 billion from the previous year.
Renault Group has also made strides in its employee ownership initiative. With nearly 2.7 million additional shares held by employees, the Renaulution Shareplan operation represents 0.9% of Renault Group's capital. More than 95,000 employees benefitted from 6 free shares and over 40,000 also subscribed to shares at a preferential price. Renault Group has started a plan to increase the share of employees in its capital to reach 10% by 2030.
In terms of product performance, the growing popularity of E-TECH technologies is evident. E-TECH sales represented 39% of Renault brand passenger cars sales in Europe in 2022. The Renault Arkana, a popular E-TECH model, recorded 86,000 sales in more than 50 countries in 2022, with 65% of sales in E-TECH version.
The company's focus on retail sales has also paid off, with the sales mix to retail customers in the 5 main European countries reaching 67% in 2022, up 9 points from 2021 and 15 points from 2019. The Group's orderbook at the end of 2022 was at record levels in Europe, with 3.5 months of sales.
Looking ahead, Renault Group aims to improve its performance in 2023 with a Group operating margin of at least 6% and an Automotive operational free cash flow of at least €2 billion. The company's optimism is well-founded, given its strong performance in 2022 and its commitment to innovation and employee ownership.
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