SHERIDAN, WYOMING – Feb. 23, 2025 – Renault Group has released its 2024 financial results, showcasing solid growth, record operating profit, and net cash, exceeding its financial guidance for the year. The company’s robust performance is attributed to its complementary auto brands, all of which delivered growth.
Financial Highlights of 2024
Renault Group reported a Group revenue of €56.2 billion, marking a 7.4% increase, and a 9.0% increase at constant exchange rates compared to 2023. This growth underscores the strength of the company’s diversified brand portfolio.
The Group achieved a historical operating profit of €4.3 billion, an increase of €146 million compared to 2023. When excluding Horse impacts, the growth rate reaches 15%, representing 7.6% of revenue.
Net Income and Cash Flow
The net income – Group share reached €2.8 billion, excluding a total of -€2.0 billion of Nissan’s impacts related to capital loss on Nissan’s shares disposals, Nissan’s contribution, and partial impairment of investment in Nissan. This represents a 21% increase compared to 2023. The reported net income – Group share was €0.8 billion.
Renault Group demonstrated strong financial discipline with a solid free cash flow of €2.9 billion, surpassing the guidance of ≥€2.5 billion. This was driven by a strong operational performance.
The Automotive net cash financial position almost doubled, reaching a record €7.1 billion at December 31, 2024, an increase of €3.4 billion compared to December 31, 2023.
Dividend and Future Outlook
The company’s solid performance allows for a proposed dividend of €2.20 per share, a 19% increase compared to the previous year. This proposal will be submitted for approval at the Annual General Meeting on April 30, 2025.
Looking ahead to 2025, amidst market uncertainties, particularly due to CO₂ emissions regulation impacts in Europe (CAFE), Renault Group aims to achieve a Group operating margin of ≥7%. This includes an estimated 1-point negative impact from CAFE. The company also targets a free cash flow of ≥€2 billion, including €150 million from Mobilize Financial Services (MFS) dividends.
"Record profitability and cash generation, exceeding 2024 FY financial guidance," the company stated in its official release, highlighting the successful execution of its strategic plan.
Strategic Focus and Market Position
Renault Group's solid order book in Europe, representing approximately two months of forward sales, indicates strong customer demand. The company's focus on its complementary auto brands has proven successful, driving consistent growth.
The reduced MFS dividend for 2025 is a strategic move to maintain a minimum level of MFS equity, ensuring compliance with European Central Bank regulations and credit rating agencies' solvency ratios. Renault Group anticipates that MFS dividends will return to historical averages in the future, subject to regulatory and MFS board approvals.
Navigating Future Challenges
Renault Group acknowledges the market uncertainties, especially those related to CO₂ emissions regulations in Europe. The company is proactively addressing these challenges by incorporating the estimated CAFE impact into its operating margin target for 2025.
The company's focus on operational efficiency and financial discipline will be crucial in navigating these uncertainties and achieving its financial targets.
Key Takeaways
- Record profitability and cash generation in 2024.
- Strong revenue growth driven by complementary auto brands.
- Significant increase in Automotive net cash financial position.
- Proposed dividend increase of 19%.
- Strategic focus on navigating market uncertainties and regulatory impacts.
Renault Group's 2024 results reflect a strong and resilient business model. The company's strategic initiatives and financial discipline position it well for continued success in the evolving automotive industry.
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