by Gilles Guillaume

PARIS (Reuters) – Renault announced on Thursday a sharp 29.9% increase in its turnover in the first quarter thanks to a rebound in its sales in volume and the maintenance of a strong price effect.

Supported by the recent launches of the electric Mégane, the Dacia Jogger and the Renault Arkana and Austral, the diamond group saw its unit sales rebound by 14.1% in the first three months of the year to 535,000 vehicles, after several consecutive years of decline, giving a turnover of 11.498 billion.

This figure is higher than an analyst consensus of 11.076 billion euros provided by Renault.

“The group is pursuing its commercial policy centered on value by optimizing its pricing and commercial discounts policy, and by focusing on the most profitable channels,” said financial director Thierry Piéton, quoted in a press release.

The price effect remained strong at 9.4 points and the product mix effect, also reflecting the move upmarket during launches, rose to 5.2 points.

“The high order portfolio at the end of March and all future launches will continue to support the group’s commercial activity”, added Thierry Piéton.

Renault thus expects its order book in Europe to remain above two months throughout the year, after a new record of 3.3 months of sales at the end of March.

The French car manufacturer has also maintained its 2023 objectives, i.e. an operating margin greater than or equal to 6% and an automotive operating free cash flow greater than or equal to two billion euros.

The turnover of the quarter no longer includes the Russian industrial activities, deconsolidated after their sale in the wake of the invasion of Ukraine by Russia.

(Gilles Guillaume, edited by Camille Raynaud)

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