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Groupe Renault

Revenues of €11.5 billion in the third quarter of 2018

October 23, 2018
  • Group registrations increased by 2.9%, including Jinbei and Huasong brands since January 1, 2018. On an equivalent scope to 2017, Groupe Renault sales decreased by 1.7% in a global market that fell by 2.4%.

  • Group revenues amounted to €11,484 million1-2 in the quarter (-6.0%). At constant exchange rates and perimeter3, the decrease would have been 1.4%.

  • The Group confirms its guidance for the year.

 

Sales results: third quarter highlights

Groupe Renault’s worldwide registrations (passenger cars + light commercial vehicles, including Jinbei and Huasong since January 1, 2018) rose by 2.9% in the third quarter, in a market down 2.4%, resulting in a market share of 4.0% (+0.2 points compared to 2017).

 

In Europe, Group registrations increased by 8.6% in a market up 0.8%, mainly due to the success of the B segment models (Clio, Captur) and C segment models (Mégane and New Duster). In the electric vehicle segment, ZOE recorded registrations up 7% and Kangoo Z.E. doubled its sales.

 

Outside Europe, in a market down 3%, Group registrations decreased by 2%, including Jinbei and Huasong (-10.4% excluding Jinbei and Huasong).

 

In the Americas, Group registrations were up 0.2% despite the fall in the Argentinian market (-24.9%). In Asia-Pacific, the increase was 72%, including Jinbei and Huasong (-14.8% on an equivalent basis in 2017).

 

The Group faced a slowdown of its registrations in Africa, Middle East, India (-24.4%) and Eurasia (-5.6%) regions. The Africa Middle East India region was mainly impacted by a decline in India (-34.7%) and in Iran, where our activity was stopped. In Eurasia, registrations continued to increase in Russia (+5.0%), but Turkey sales are down 52.5% in a market down 51.3%.

 

Third quarter revenues by operating sector

In the third quarter of 2018, Group revenues reached €11,484 million1-2 (-6.0%). At constant exchange rates and perimeter3, Group revenues decreased by 1.4%.

 

As of January 1, 2018, the Group changed the allocation of interest rate subsidies between operating segments, with no impact on consolidated revenues. On a comparable basis, Automotive excluding AVTOVAZ revenues would have been €142 million (1.3 points) higher, offset by an equal decrease in Sales Financing revenues.

 

Automotive excluding AVTOVAZ revenues amounted to €10,057 million, down 8.4%. Beyond the negative 1.3 points effect mentioned above, revenues were negatively impacted by the sharp devaluation of the Group's main currencies (Argentinian peso, Brazilian real, Turkish lira, Russian ruble), which led to a negative currency effect of 4.0 points. The pricing policy notably implemented in these countries led to a positive price effect of 1.6 points. The volume effect weighed in at -2.6 points, mainly due to the fall in the Turkish and Argentinian markets and a destocking of the dealer network in the third quarter. Finally, the decline in our sales to partners impacted revenues by -3.3 points due to the cessation of our deliveries in Iran, lower demand for diesel engines and lower production for Nissan.

 

Sales Financing (RCI Banque) posted revenues of €800 million in the third quarter, up 31.1% compared to 2017. Excluding the impact of the accounting change mentioned above, the increase would have been 7.9%. The number of new financing contracts fell 2.5%, mainly due to lower activity in Turkey and Argentina. Average performing assets increased by 12.9% to €45.3 billion.

 

AVTOVAZ contribution to Group revenues amounted to €627 million in the quarter, down 1.1%, after taking into account a negative exchange rate effect of -€79 million. At constant exchange rates, revenues would have been up 11.4%.

 

Outlook 2018

The global market is expected to grow 2% compared to 2017 (previously +3%). The European market is expected to expand more than 1.5% (versus +1.5%) with an increase of more than 4% for France (versus +2%).

 

Outside Europe, Brazil is expected to grow by 10% and Russia by more than 10%. China is expected to grow by 2% (versus +5%), and India by 8%.

 

Within this context, Groupe Renault confirms its guidance:

- Increase Group revenues (at constant exchange rates and perimeter3)*
- Maintain Group operating margin above 6.0%*
- Generate a positive Automotive operational free cash flow

 

_____________________________________________________________________________________________________

1 The Group has applied IFRS 15 since 1 January 2018. The implementation of this standard does not affect the comparability of the published quarterly information.
2 Presented consolidated data do not take into account the application of the requirements of  IAS 29 - Financial Reporting in Hyperinflationary Economy for our business in Argentina, as the implementation of this standard has not yet been completed. This standard will be applied in our 2018 full year financials effective retroactively from January 1st, 2018.
3 In order to analyze the change in consolidated revenues at constant perimeter and exchange rates, Groupe Renault recalculates revenues for the current year by applying the average annual exchange rates of the previous year, and excluding significant changes in perimeter that occurred during the year.
* Excluding IFRS 15 impact

 

 

Groupe Renault consolidated revenues

 (€ million)

2018

2017

Change

2018/2017

Q1

 

 

 

Automotive excluding AVTOVAZ

11,646

11,939

-2.5%

Sales Financing

793

 621

+27.7%

AVTOVAZ

716

569

+25.8%

Total

13,155

13,129

+0.2%

Q2

 

 

 

Automotive excluding AVTOVAZ

15,221

15,056

+1.1%

Sales Financing

820

630

+30.2%

AVTOVAZ

761

722

+5.4%

Total

16,802

16,408

+2.4%

Q3

 

 

 

Automotive excluding AVTOVAZ

10,057

10,974

-8.4%

Sales Financing

800

610

+31.1%

AVTOVAZ

627

634

-1.1%

Total

11,484

12,218

-6.0%

9 months YTD

 

 

 

Automotive excluding AVTOVAZ

36,924

37,969

-2.8%

Sales Financing

2,413

1,861

+29.7%

AVTOVAZ

2,104

1,925

+9.3%

Total

41,441

41,755

-0.8%

 

Total Group’s registrations PC+LCV by region

 

Q3

Ytd end of September

 

2018

2017

% var.

2018

2017

% var.

France

142,320

130,896

8.7%

531,536

498,898

6.5%

Europe (Excl France)

289,332

266,490

8.6%

971,200

924,046

5.1%

France + Europe Total

431,652

397,386

8.6%

1,502,736

1,422,944

5.6%

Africa Middle East India

97,101

128,503

-24.4%

348,544

380,234

-8.3%

Eurasia

174,710

185,153

-5.6%

546,469

508,204

7.5%

Americas

110,709

110,523

0.2%

325,074

292,115

11.3%

Asia Pacific

77,367

44,981

72.0%

247,695

145,446

70.3%

Total Excl France + Europe

459,887

469,160

-2.0%

1,467,782

1,325,999

10.7%

World

891,539

866,546

2.9%

2,970,518

2,748,943

8.1%

 

Total registrations by brand

 

Q3

Ytd end of September

 

2018

2017

% var

2018

2017

% var

RENAULT

PC

491,705

516,394

-4.8%

1,667,030

1,660,735

0.4%

LCV

86,823

89,598

-3.1%

301,305

291,145

3.5%

PC+LCV

578,528

605,992

-4.5%

1,968,335

1,951,880

0.8%

RENAULT SAMSUNG MOTORS

PC

20,218

22,137

-8.7%

58,798

74,913

-21.5%

DACIA

PC

141,694

140,918

0.6%

496,857

451,569

10.0%

LCV

10,387

10,018

3.7%

33,439

32,730

2.2%

PC+LCV

152,081

150,936

0.8%

530,296

484,299

9.5%

LADA 

PC

97,103

85,331

13.8%

276,842

230,163

20.3%

LCV

3,185

2,150

48.1%

9,919

7,688

29.0%

PC+LCV

100,288

87,481

14.6%

286,761

237,851

20.6%

ALPINE 

PC

751

 

 

1,388

 

 

JINBEI&HUASONG

PC

1,892

 

 

10,549

 

 

LCV

37,781

 

 

114,391

 

 

PC+LCV

39,673

 

 

124,940

 

 

GROUPE RENAULT

PC

753,363

764,780

-1.5%

2,511,464

2,417,380

3.9%

LCV

138,176

101,766

35.8%

459,054

331,563

38.5%

PC+LCV

891,539

866,546

2.9%

2,970,518

2,748,943

8.1%

 

Groupe Renault’s top fifteen markets year-to-date september 2018

Year-to-date 09-2018

Volumes*

PC+LCV M/S

 

(units)

(in %)

1

FRANCE

531,536

26.59

2

RUSSIA

362,423

27.93

3

GERMANY

188,397

6.54

4

CHINA

167,908

0.86

5

ITALY

161,267

9.98

6

BRAZIL

152,235

8.56

7

SPAIN+CANARY ISLANDS

147,406

12.24

8

ARGENTINA

96,938

14.66

9

IRAN

96,000

10.00

10

TURKEY

88,677

19.13

11

UNITED KINGDOM

80,719

3.68

12

BELGIUM+LUXEMBOURG

72,378

12.81

13

SOUTH KOREA

62,343

4.77

14

INDIA

61,905

2.04

15

MOROCCO

54,958

43.00

* Registrations, excl. Twizy

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