Renault has reported a “record” operating profit in absolute value, reaching €4.26bn ($4.44bn) in 2024, an increase of €146m compared to 2023.
The company said the increase was driven by new launches and improved financial positions despite market uncertainties.
The auto giant reported a 7.4% rise in group revenue, which stood at €56.2bn, up from €52.4bn the previous year.
In 2024, the company’s net income plummeted to €891m.
Excluding a €1.5bn capital loss from the disposal of Nissan shares, a €700m impairment on the Nissan investment, and a €200m contribution from Nissan, adjusted net income reached €2.8bn, up from €2.3bn in 2023.
Despite the revenue growth, Renault’s net income for the year plummeted to €891m from €2.3bn a year ago.
Renault's financial performance was also impacted by its associated companies, particularly Nissan, where Renault's share of profits shifted from a positive €880m in 2023 to a loss of €521m in 2024.
The contribution from Nissan alone dropped significantly from €797m to a loss of €483m.
However, when adjusted for Nissan's impacts, Renault's net income saw an increase from €2.3bn to €2.8bn.
The automotive operating margin was recorded at 5.9% of automotive revenue, amounting to €2.99bn in 2024 compared to €3.05bn in 2023.
Operating income, however, showed resilience with a modest rise from €2.5bn to €2.6bn.
The company's free cash flow experienced a slight dip, coming in at €2.9bn for 2024, down from €3.0bn the previous year.
In light of these results, Renault has proposed a dividend increase for the financial year 2024, offering €2.20 per share, which is a 19% rise from the previous year.
Renault Group CEO Luca de Meo said: “Renault Group continues to improve its operational performance, execute its strategy and deliver on its targets. 2024 was an important year with the first benefits of our unprecedented product offensive.”
Looking ahead to 2025, the company expects to benefit from the full-year impact of its 2024 product launches, alongside a new product offensive and cost reduction efforts.
For 2025, Renault Group is setting ambitious targets despite market uncertainties, particularly concerning CO2 emissions regulations in Europe.
The automaker aims to achieve a group operating margin of at least 7%, which includes an estimated one point of negative impact from Corporate Average Fuel Economy (CAFÉ) regulations.
Additionally, the company targets a free cash flow of at least €2bn, including €150m from Mobilize Financial Services dividends, compared to €600m in 2024.
Recently, Renault signed an agreement with China’s Geely to extend their strategic partnership into Brazil for the production and sale of zero and low emission vehicles.
Geely will hold minority stake in Renault do Brasil, enabling access to localised production, sales, and service resources.
