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Renault aims for higher profitability this year, though reports a loss for 2022 due to Russia exit

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Renault SA on Thursday said it is aiming to further increase its profitability this year as sales and operating earnings rose in 2022, though the group swung to a net loss as a result of its withdrawal from Russia.

Renault said it will pay a dividend of 25 European cents a share for the year, after two years without.

The French auto maker’s operating profit for the year more than doubled on an adjusted basis to 2.22 billion euros ($2.37 billion) on sales that climbed 11% to EUR46.39 billion.

This beat analysts’ expectations for sales of EUR45.38 billion, according to a poll compiled by FactSet.

Renault booked an operating margin of 5.6%, rising to 6.4% in the latter half of the year, in line with an ambition to top 5%. The group booked a net loss of EUR338 million after losing EUR1.36 billion in the first half following its decision to unload its Russia business. For continuing operations, Renault made a net profit of EUR1.62 billion.

Looking ahead, Renault said it is aiming for an operating margin of at least 6% in 2023, as well as automotive operational free cash flow of at least EUR2 billion.

Write to Joshua Kirby at; @joshualeokirby


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