Half-yearly results of 2023 reveal unprecedented profitability and cash flow freedom
Renault Group Reports Strong First-Half Results for 2023
Renault Group has announced its financial results for the first half of 2023, showing a significant improvement compared to the same period last year. The company's revenue reached an all-time high of €26,849 million, a 27.3% increase from 2022 H1.
The Group's automotive revenue stood at €24,850 million, up 27.0% compared to 2022 H1. This growth was driven by strong sales across various models, with Renault Megane E-TECH Electric recording 23,000 sales in H1 2023, and Renault Austral selling almost 40,000 units. The Megane E-TECH Electric saw 70% of sales on high trim versions and more than 80% on the most powerful engine, while Austral sales were dominated by hybrid versions, accounting for 65% of sales, and high trim versions, with 60% of total sales.
Dacia also reported a significant increase in sales, with a 24% rise to more than 345,000 units worldwide. Renault brand worldwide sales reached over 772,000 units, representing a nearly 12% increase versus 2022 H1.
The Group's operating margin stood at a record 7.6% of revenue in H1 2023. This impressive figure includes a positive non-cash effect of the cessation of amortization for assets held for sale, accounting for €275 million in H1 2023.
The cash flow of the Automotive business also reached a record level in H1 2023, reaching €3,292 million. The Group made the last repayment of €1 billion for the mandatory annual repayment of a loan in the first half of 2023, and the automotive net financial position stood at €2,185 million on June 30, 2023.
The level of inventories slightly decreased compared to 2023 Q1, which was at 580,000 units. As of June 30, 2023, total inventories of new vehicles (including the independent dealer network) represented 569,000 vehicles.
The Group's financial report, with a complete analysis of the financial results in the first half of 2023, is available at the corporate website in the "Finance" section. The condensed half-year consolidated financial statements of Renault Group at June 30, 2023 were reviewed by the Board of Directors on July 26, 2023.
Renault Group confirms its 2023 FY financial outlook: Group operating margin between 7% and 8%, and free cash flow superior or equal to €2.5bn. The company's liquidity reserve at the end of June 2023 stood at €16.8 billion.
However, it's worth noting that passenger car sales to retail customers in Europe (Austria, Belgium, Croatia, Czech Republic, Denmark, Finland, France, Germany, Hungary, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom) are not provided in the given paragraph.
The institution that achieved an operational income of 2.096 million euros in the first half of 2023 is not identified in the provided search results.
For more detailed information, please refer to Renault Group's official financial report on their website.
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