- Renault group revenue increased 13.7 per cent in the first quarter, supported by a recovery in Europe.
- Renault group registrations increased 0.8 per cent during the first quarter of 2015, reaching 641,588 vehicles in a worldwide automotive market up 1.7 per cent.
- Market growth and the success of new models in Europe compensated for the downturns in the Russian and Brazilian markets.
- During the first quarter of 2015, Renault group registered 641,588 units (+0.8 per cent), posting a stable worldwide market share at 3.0 per cent.
- In Europe, where the market increased by 8.9 per cent, Group registrations were up 9.9 per cent, driven by the success of Clio, Captur and Twingo.
- International registrations dropped by 11.3 per cent, primarily due to the downturns in the Brazilian and Russian markets.
- Group revenue reached €9,388 million for the quarter, a year-on-year increase of 13.7 per cent, thanks in part to higher sales to partners.
- As a result of a stronger quarter than expected, the Renault group revised its 2015 outlook for the European automotive market and now forecasts a full-year growth of 5 per cent.
- The Group confirms its objectives for the year.
COMMERCIAL RESULTS: Q1 2015 HIGHLIGHTS
In a global automotive market up 1.7 per cent, Renault group registrations increased 0.8 per cent to 641,588 units.
In Europe, Group registrations increased 9.9 per cent in a market up 8.9 per cent, taking a market share of 9.8 per cent. The Renault brand grew 11.8 per cent, supported by Clio 4, Captur and Twingo, up 17 per cent, 27 per cent and 40 per cent respectively.
The Dacia brand recorded a 4.3 per cent growth in sales, thanks to the continued success of Duster and Dokker.
In France, the Group’s biggest market, registrations increased by 3.1 per cent in the period, to 150,179 vehicles, Renault brand sales, up 7.1 per cent, contributing to this growth. Dacia brand sales, however, decreased 12.6 per cent due to the high 2014 Q1 basis of comparison, that followed the launch of Duster Phase 2 at the end of 2013.
Southern Europe recovered strongly, particularly in Spain, where registrations increased 44.9 per cent, with a market share reaching 11.9 per cent. Sandero remained market leader for vehicles sold to private customers. In Italy, the Group’s third market, registrations increased by 28.3 per cent to 41,752 units in a market up 12.6 per cent. Clio was the best-selling imported vehicle in Italy.
In Great Britain, the Group continued to gain market share, posting an increase of 18.0 per cent in registrations, in a market up 8.4 per cent.
Outside Europe, emerging markets continued to experience turbulence during the first quarter: registrations decreased from 43 per cent of total sales in Q1 2014 to 38 per cent in Q1 2015.
In the Americas, Brazil, second biggest market in registrations, fell by 16.1 per cent. However, the Group’s market share increased by 0.1 points to 6.8 per cent, despite a 15.3 per cent decrease in registrations.
In Argentina, the market continued declining, posting a 27.6 per cent drop. Renault’s registrations fell 52.7 per cent, as a decision to limit the Group’s financial exposure to the Argentinean Peso. To prepare the future, a USD 100 million investment plan was announced, with the intention to produce Logan and Sandero locally and to improve financial flexibility.
In Eurasia, the Group’s two major markets moved in opposite directions. In Russia, Group registrations fell by 40.7 per cent against a market decline of 36.3 per cent. This decline was the result of a decision to preserve profitability, leading to production cuts during several weeks.
By contrast, registrations in Turkey increased by 28.2 per cent, benefiting from a market up 50.3 per cent.
In the Africa, Middle East, India Region, strong sales momentum continued benefiting to the Group in the Maghreb area, as registrations were up 12.6 per cent in a market that dropped 6.2 per cent. Logan is the leading selling car in Algeria and Morocco.
In India, in a market that grew by 4.5 per cent, Renault recorded an 11.4 per cent decrease in registrations, pending the launch of Lodgy and A-Entry.
In Asia-Pacific, Renault group registrations were up 13.7 per cent in Korea, thanks to the success of QM3 in the B-segment.
REVENUES BY OPERATING SECTOR
First quarter 2015 Group revenue reached €9,388 million, an increase of 13.7 per cent compared to the same period last year (+12.5 per cent, excluding foreign exchange rate effects).
Automotive revenue came to €8,829 million (+14.3 per cent), due to an increase in invoices (+3.3 points) and sales to partners (+6.7 points). The weakness of the Euro versus a basket of currencies (Korean Won, Indian Rupee, British Pound, Argentinean Peso…) had a favourable impact of 1.3 points. The price effect contributed positively by 2.1 points, as a result of price increases decided at the end of 2014 in emerging countries, in order to compensate for the currency declines (notably in Russia and South America).
Sales financing (RCI Banque) revenues came to €559 million, an increase of 5.5 per cent compared to 2014. New financing contracts increased by 14.2 per cent and totalled 320,200. Outstanding loans increased by 10.4 per cent to €27.3 billion.
Global car demand should continue to grow in 2015 (+2 per cent). The European market, which was better than expected during the first quarter, should increase by 5 per cent (compared to +2 per cent initially forecasted). By contrast, the Brazilian and Russian markets should experience a sharper decrease than expected.
Within this context, the Renault group aims to:
- Increase further its registrations and revenues (at constant exchange rates),
- Continue to improve the Group’s operating margin and that of the Automotive division,
- Generate positive Automotive operational free cash flow.
Renault initially envisaged a global consolidation of AVTOVAZ by the end of 2014. This consolidation was not possible and will occur when conditions for full control will be met.
Renault group consolidated revenues
|(in € million)|
|1st quarter||2015||2014||Change 2015/2014|
|Automotive||8,829||7,727||+14.3 per cent|
|Sales financing||559||530||+5.5 per cent|
|Total||9,388||8,257||+13.7 per cent|