Renault Group has announced a significant increase in its operating profit, reaching a record €4.26bn ($4.44bn) in 2024. This marks a €146m increase compared to the previous year, driven by new launches and improved financial positions despite market uncertainties.
The company reported a 7.4% rise in group revenue, reaching €56.2bn in 2024, up from €52.4bn in 2023. However, Renault’s net income for the year dropped to €891m, mainly due to capital losses from the disposal of Nissan shares and impairments on the Nissan investment.
Despite the challenges posed by associated companies like Nissan, Renault’s adjusted net income saw an increase from €2.3bn to €2.8bn in 2024. The automotive operating margin stood at 5.9% of automotive revenue, amounting to €2.99bn, while operating income showed resilience with a modest rise.
Looking ahead to 2025, Renault Group is setting ambitious targets, aiming for a group operating margin of at least 7% despite market uncertainties, particularly concerning CO2 emissions regulations in Europe. The company also targets a free cash flow of at least €2bn, including dividends from Mobilize Financial Services.
In a strategic move, Renault signed an agreement with China’s Geely to extend their partnership into Brazil for the production and sale of zero and low emission vehicles. Geely will hold a minority stake in Renault do Brasil, enabling access to local production, sales, and service resources.
Overall, Renault Group CEO Luca de Meo expressed confidence in the company’s performance, stating that 2024 was an important year with the benefits of their product offensive starting to show. With a new product offensive and cost reduction efforts planned for 2025, Renault is poised to continue its growth trajectory and deliver on its targets.
