Despite the recovery, the automotive group posted a net loss of 1,666 million
The Renault car group is starting its recovery process after the Covid-19 crisis and the exit from Russia because of the war in Ukraine, and at the end of the first half of the year it recorded an operating profit of EUR 657 million, an advance of EUR 458 million. compared to the figures of the previous year.
The company’s net income for the first six months of the year was negatively impacted by the adjustments announced in May following the termination of the company’s industrial activities in Russia. In addition, he pointed out that the semiconductor supply crisis, which is affecting the entire auto industry, has also had a negative effect on the company, with an estimated loss of some 300,000 sales this year.
This is reflected in the results the company presented this Friday, which despite the recovery, delivered a net loss of 1,666 million euros in the first half of the current year, compared to a profit of 368 million euros in the same period of the previous year. .
“Despite all the headwinds from the end of activity in Russia, the semiconductor crisis and the rise in costs, the group continues to improve its operating profit and is starting to benefit from the success of new launches,” he said. the Renault group, Luca de Meo.
The multinational said it continued its recovery process in the first six months of the year, improving profitability, generating cash flows and strengthening its financial structure.
Between January and June of the current year, a turnover of 21,121 million euros was achieved, a slight increase of 0.3% compared to the 21,057 million euros invoiced in the first half of 2021.
At the end of the semester, the company achieved an operating profit of 939 million euros, an increase of 159%, while the operating margin increased by 2.6 percentage points to 4.7%.
In the autumn, new medium-term financial targets will be presented, as well as the accelerated implementation of its “Renaulution” plan with the aim of “turning the Renault group into a competitive, technological and responsible player”, said Luca de Meo.
The French consortium expects to close the current year with an operating margin of more than 5%, which is an increase of two points compared to the previous 3%, while the operating cash flow of the Automotive division will exceed 1,500 million euros. amounts.
The car company has emphasized the success of the new models in its range, both from Renault itself and from Dacia.
This underlines the result of the Renault Arkana, with more than 100,000 orders since its launch and with 60% of sales in the channel to private individuals. The 100% electric version of the Megane E-Tech also has a promising launch, with over 25,000 orders already placed, with 75% of the versions being top class and 80% in the most powerful engines. The first vehicles arrived at the French dealers in mid-May; its launch in European countries is underway and will continue until September.
Particularly important is the success of the Dacia Sandero, which remains the best-selling vehicle for private customers in Europe. With over 30,000 registered orders in the first half of the year. The Dacia Spring electric commercial vehicle has also become the leader in the sale of electric vehicles to private individuals in France. For its part, the Dacia Jogger collects more than 50,000 orders in 6 months and the sports company Alpine doubled its orders compared to the first half of 2021 thanks to the success of its new A110 range.
Source: La Verdad
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
