Groupe Renault’s worldwide registrations (passenger cars PC + light commercial vehicles LCV, including Jinbei and Huasong since January 1, 2018) rose 4.8% in the first quarter, in a market up 2.7%.
The market share is now 4.0% (+0.1 points compared to 2017). The Renault and Dacia brands each set a new sales record for a first quarter.
In Europe, Group registrations increased by 2.8% in a market up 0.6%, thanks to the success of New Duster and Koleos.
Outside Europe, the Group recorded sales up 22.1% in Eurasia and 21.3% in the Americas, and is facing a slowdown in the Africa Middle-East India (-5.3%) and Asia-Pacific (-18.6%) regions.
FIRST QUARTER REVENUES BY OPERATING SECTOR
In the first quarter of 2018, Group revenues came to €13,155 million (+0.2%). At constant exchange rates and perimeter2, Group revenues increased by 5.4%.
As of January 1, 2018, the Group changed the allocation of interest rate subsidies between operating segments, with no impact on consolidated revenues. With comparable presentation method, Automotive excluding AVTOVAZ revenues would have been higher by €136 million (1.1 points), offset by an equal decrease in Sales Financing revenues.
Automotive excluding AVTOVAZ revenues amounted to €11,646 million, down 2.5%. Beyond the negative 1.1 points effect mentioned above, this decrease was mainly explained by a negative currency effect of 4.8 points, due to the strong devaluation of the Group’s main currencies (Argentine peso, Brazilian real, Turkish lira, US dollar). The volume effect was positive (+2.3 points). The price effect was positive by 1.2 points mainly driven by emerging countries to offset currency weakness.
Sales Financing(RCI Banque) generated revenues of €793 million in the first quarter, up 27.7% compared to 2017. Excluding the impact of the accounting change mentioned above, the increase would have been 5.8%. The number of new financing contracts increased by 4.7%. Average performing assets rose 13.2% to €42.9 billion.
AVTOVAZ contribution to the Group’s revenues totaled €716 million in the quarter, up 25.8%, thanks to strong growth in Lada sales, and despite a negative exchange rate effect of €85 million.
OUTLOOK 2018
In 2018, the global market is expected to grow 2.5% compared to 2017. The European market is expected to expand 1% with an increase of 1% for France.
At international level, Russia is expected to grow by close to 10%. Brazil, as well as China, are expected to grow by more than 5%, and India by 6%.
Within this context, Groupe Renault confirms its guidance:
- Increase Group revenues (at constant exchange rates and perimeter2)*
- Maintain Group operating margin above 6.0%*
- Generate a positive Automotive operational free cash flow
* Excluding IFRS 15 impact
