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Renault boosts profitability but Russia exit pushes it into loss
Business and Economy

Renault boosts profitability but Russia exit pushes it into loss

by  AFP 1 min read
Renault exited Russia in May after Moscow invaded Ukraine
Renault exited Russia in May after Moscow invaded Ukraine. Photo: Lou BENOIST / AFP/File
Source: AFP

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French automaker Renault said Thursday it boosted manufacturing profitability in 2022 but the sale of its operations in Russia pushed the company into a net loss.

Renault expanded its operating profit margin to 5.6 percent of sales in 2022 and aims to increase it to at least 6.0 percent this year.

Meanwhile sales rose by 11.4 percent to 46.4 billion euros ($49.7 billion).

"2022 has more than kept its promises: with results above our initial objectives and market expectations," chief executive Luca de Meo said in a statement.

"This performance reflects the energy and hard work of the Renault Group's teams even as we have faced strong headwinds related to the disposal of our operations in Russia, the semiconductor crisis and cost inflation," he added.

Renault handed over its 68 percent stake in AvtoVAZ, the largest carmaker in Russia with the country's top brand Lada, to the Russian government in May as it joined an exodus of firms fleeing the country after Moscow's military intervention in Ukraine.

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That pushed Renault into a net loss of 338 million euros for the year.

Despite that setback, de Meo said "Renault Group’s fundamentals have been thoroughly cleaned up and there will be no turning back."

Renault decided to propose a dividend of 0.25 euros per share, the first time it will pay out to shareholders since 2019.

Source: AFP

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