Positive results for Renault in 2021 despite the difficulties that the world car market continues to face due to the shortage of chips and the increase in raw material prices.
Renault's 2021 accounts
For the French car manufacturer, 2021 ended with revenues of 46,213 billion euros, up 6,3% compared to 2020. At constant scope and exchange rates, the increase in turnover is equal to 8%. EBITDA rose by 2 billion euros, which at 31 December 2021 stood at 1,7 billion euros (3,6% of revenues). The company returned to profit, which reached 888 million euros and compares with the loss of 8 billion recorded in 2020. The figure is higher than the expectations of analysts who had estimated profits of 818,7 million. Earnings per share were 3,26 euros (-29,51 euros per share in 2020), while cars sold amounted to 2,7 million, 4,4% less than in 2020.
“The Renault group has extensively exceeded its financial goals for 2021 despite the impact of semiconductor shortages and rising raw material prices. This reflects the sustained pace of the group's profound transformation,” said ithe CEO of Renault Luca de Meo. “This performance is due to the early successes of the group's strategy of promoting value over volume and its tight financial discipline,” added CFO Clotilde Delbos.
Going forward, Automotive's operating free cash flow was positive at €1,272 billion, a figure that takes into account restructuring payments of -€602 million, asset disposals of €574 million and an impact negative from the change in working capital requirements of -330 million euro.
The board of the company will propose to the shareholders' meeting on May 25, 2022 to not paying a dividend for the 2021 financial year. In 2022, the Renault group will make the early repayment of 1 billion euros of the loan from a banking pool guaranteed by the French state, in addition to 1 billion euros related to the mandatory annual repayment. The loan will be fully repaid by the end of 2023 at the latest.
On the paris stock exchange, the share gains 1% to 36,73 euros per share.
The car crisis
Renault's results become even more significant when placed in the international context, which it sees the market grappling with difficult difficulties to overcome.
“What is happening can be summarized with the comment by Unrae, the national union representing foreign motor vehicles, on the Acea data on registrations in the 30 European countries (EU + UK + EFTA), with 822.423 cars in January (-2,4 % compared to a year ago). “2022 opens for the car market in Europe” with the lowest registration volume for at least 22 years, slightly down compared to January 2021, which in turn had already lost a quarter of volumes over the previous year and -33% compared to 2019, the last year pre-Covid", comments Unrae which underlines the double-digit loss recorded by Italy in January (-20%, worst January in the last 38 years) and by France.
