Groupe Renault Achieves 5% Operating Margin as Early as 2015

PARIS, February 12, 2016 /PRNewswire/ --

 

• Group revenues up 10.4% to €45,327 million 
• New registrations up 3.3% to 2.8 million units 
• Group operating profit at €2,320 million (+44.2%), representing 5.1% of revenues versus 3.9% in 2014 
• Automotive operating profit increased by 74.4% at €1,496 million (3.5% of automotive revenues versus 2.2% in 2014) 
• Group operating income at €2,121 million (+91.9%) 
• Associated companies' contribution amounted to €1,371 million (versus €1,362 million in 2014), including AvtoVAZ's negative contribution 
• Net income at €2,960 million (+48.1%), compared to €1,998 million in 2014 
• Positive Automotive operational free cash flow at €1,033 million 
  

"2015 results mark a decisive step towards the achievement of our plan "Drive the Change" targets. The involvement of all our staff and the success of our vehicles allowed us to reach our operating margin target sooner than planned. We must now achieve our revenue target while maintaining a margin in excess of 5%" said Carlos Ghosn, Chairman and Chief Executive Officer of Renault. 

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In 2015, Group revenues came to €45,327 million, up 10.4% from 2014. At constant exchange rates, revenues grew by 10.6%.

Automotive revenues amounted to €43,108 million, up 10.9% thanks to an increase in Group's brands volumes and sales to partners. The price effect was positive, primarily due to price increases in some emerging markets to offset currency devaluation.

The Group's operating profit amounted to €2,320 million (+44.2%), compared to €1,609 million in 2014, representing 5.1% of revenues (3.9% in 2014).

The Automotive operating profit was up €638 million (+74.4%) to €1,496 million, or 3.5% of revenues (versus 2.2% in 2014).

This performance is mainly attributable to volume growth (€480 million) and cost reduction (€527 million).

On the other hand, the mix/price/enrichment effect was negative by €379 million, mainly due to costs related to the life-cycle management of some ageing products, and to Euro 6 costs.

Finally, currency and raw materials impacts were slightly positive, respectively at €22 million and €61 million.

The contribution of Sales Financing to the Group's operating profit amounted to €824 million, compared to €751 million in 2014. This increase was due in particular to the rising contribution of services. The cost of risk improved to 0.33% of the average performing loans outstanding, compared to 0.43% in 2014.