Renault H1 Profit Weak, Margin Rises, Backs Outlook; Stock Down

(RTTNews) - Shares of Renault SA were losing more than 9 percent after the French auto major on Thursday posted weak profit for the first half year, reflecting capital loss on the disposal of Nissan shares, but operating margin and revenues were higher.

Renault further confirmed its 2024 financial outlook of group operating margin greater than or equal to 7.5 percent.

For the first half, net income, Group share, was 1.293 billion euros, lower than last year's 2.09 billion euros. Earnings per share were 4.74 euros for the period.

The latest results included 440 million euros of capital loss on the disposal of Nissan shares.

Operating income stood at 1.90 billion euros, compared to 2.09 billion euros last year. The company posted an operating margin at 8.1 percent, up 0.5 points from last year's 7.6 percent.

Automotive operating income stood at 1.60 billion euros, compared to 1.54 billion euros a year ago. Automotive operating margin of 6.6 percent improved 0.4 points.

Group revenue for the first half was up 0.4 percent to 26.9587 billion euros from last year's 26.849 billion euros. At constant exchange rates, revenue grew by 3.7 percent.

Meanwhile, Automotive revenue for the period was down 1.9 percent to 24.4 billion euros, while it was up 1.2 percent at constant exchange rates.

The results reflected a positive price effect of 1.8 points, product mix effect of 1 point and geographic mix of 1.1 points, driven by the Group's activity in Europe. Meanwhile, there was a negative volume effect of 4.7 points.

The company noted that 1.9 percent increase in registrations was more than offset by a destocking within the dealership network in the first half compared to an important restocking last year.

In France, Renault shares were trading at 43.52 euros, down 8.48 percent.

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