Renault reports lower-than-expected profits for 2023, but increases dividends

Renault reports lower-than-expected profits for 2023, but increases dividends

French automaker Renault reported this Wednesday a slightly lower-than-expected net profit for the year 2023, but recorded margin and revenue gains and increased its proposed dividend payment.




Renault said it would propose a dividend of 1.85 euros for 2023, up from the 0.25 euros paid in 2022, following U.S. automakers Ford and General Motors in offering more cash to investors.

The stronger cash position and growing margins are the latest signs that the automaker’s restructuring under CEO Luca de Meo is paying off.

To boost sales, Renault reduced its vehicle range and refocused on the most profitable markets and models.

“The proposed dividend payment demonstrates our confidence in our ability to continue growing,” Thierry Pieton, Renault’s chief financial officer, told reporters.

Renault reported an operating margin of 7.9%, up from 5.5% in 2022, and expects an operating margin of around 7.5% in 2024, maintaining its target of double-digit margins by 2030 .

The results come after Renault reported 9% growth in global sales volumes last year, following four consecutive years of decline.

For 2023, the automaker reported a net profit of 2.315 billion euros, compared to a loss of 716 million euros in 2022, which included the automaker’s exit from Russia.

Net profit was lower than the average estimate of 3.52 billion euros from analysts surveyed by LSEG.

Revenue for 2023 increased by 13% to 52.38 billion euros. Analysts had expected sales of 52.88 billion euros.

Source: Terra

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