Groupe Renault

Financial results for the 1st half of 2016: Groupe Renault continued its growth and reached a record operating margin in the 1st half of 2016

July 28, 2016
  • Group revenues up 13.5% to €25,185 million.
  • Registrations up 13.4% to 1.57 million units.
  • Group operating profit at €1,541 million (+40.6%), representing 6.1% of revenues, compared with €1,096 million1, representing 4.9%1 of revenues in the 1st half of 2015.
  • Automotive operating profit at €1,121 million (+64.9%), compared with €680 million1 (4.7% of revenues compared with 3.2%1).
  • Group operating income at €1,476 million (+50.6%) compared with €980 million1.
  • Net income at €1,567 million (+7.9%) compared with €1,452 million1.
  • Positive Automotive operational free cash flow of €381 million.


“The first half results demonstrate the relevance of our strategy. Success of our new models, our regional diversification and all employees engagement have allowed the group to set a new record for its first half operating margin and to have confidence in the outlook for the full year”, said Carlos Ghosn, Chairman and Chief Executive Officer of Renault.


In the first half of 2016, Group revenues came to €25,185 million, up 13.5% compared with the first half of 2015.


Automotive revenues amounted to €24,078 million, up 14.3% thanks to an increase in the Group's brand volumes (+10.6 points) and sales to partners (+3 points). The price effect was positive (+3.8 points), primarily due to price increases in some emerging markets to offset currency devaluation (-4.9 points). The mix effect is positive at 1.8 points.


The Group's operating profit amounted to €1,541 million (+40.6%), compared with €1,096 million1 in the first half of 2015, and represents 6.1% of revenues (4.9%1 in the first half of 2015).


The Automotive operating profit was up €441 million (+64.9%) to €1,121 million and reached 4.7% of revenues, compared with 3.2%1 in the first half of 2015. This performance can be explained mainly by strong business growth (€614 million positive impact), higher prices and an improved mix. The currency impact is unfavorable (-€432 million), mainly due to the depreciation of the Argentinian peso, the Russian rouble and the British pound. However, raw materials had a positive effect of €164 million. The positive mix/price/enrichment effect of €135 million was a marked improvement compared with the first half of 2015, thanks in particular to the success of our new models. Cost reductions were affected by the increase in R&D expenses to prepare the future, the decrease in their capitalization rate, and higher than usual start-up costs due to the large number of launches.


Sales Financing contributed €420 million to the Group's operating margin, compared with €416 million1 in the first half of 2015. This stable profit is related to the sharp increase in loans outstanding, but negatively impacted by adverse currency evolution and the decrease in Americas’ business. However, the cost of risk stabilized at a very good level of 0.30% of the average performing assets (0.31% in the first half of 2015).


Other operating income and expenses improved notably thanks tothe drop in expenses related to the competitiveness plan in France. They remained  negative at -€65 million versus -€116 million in the first half of 2015.


The Group's operating income came to €1,476 million compared with €980 million1 in the first half of 2015 (+50.6%). This improvement is due to the increase in the operating profit and the reduction in other operating expenses.


The contribution of associated companies, mainly Nissan, came to €678 million, compared with €895 million2 in the first half of 2015. Nissan’s contribution was impacted by a one-off charge booked in Q1. AVTOVAZ contribution is negative at -€75 million versus -€87 million2 in the first half 2015, despite a deterioration of the operating result.
Regarding AVTOVAZ, the group confirms its intention to take part in a recapitalization operation before the end of the year, which should result in the consolidation of AVTOVAZ as of December 31, 2016.


Net income came to €1,567 million (+7.9%), and Group share totaled €1,501 million (€5.51 per share compared with €5.061 per share in the first half of 2015).


Automotive operationalfree cash flow was positive at €381 million after taking into account a negative change of €129 million in the working capital requirement.


At June 30, 2016, total inventories (including the independent network) represented 60 days of sales, compared with 66 days at end-June 2015.





In 2016, the global market is expected to record growth around 1.7% compared to 2015. The European market, as well as the French one, are now expected to increase by at least 5%.


Outside Europe, the Brazilian and Russian markets are expected to decline: -15% to -20% for Brazil and  -12% for Russia. On the contrary, China (+4% to +5%) and India (+7% to +9%) should pursue their positive momentum.


Within this context, the Renault Group (at constant scope of consolidation) confirms its full-year 2016 guidance:

  • Increase Group revenues (at constant exchange rates)
  • Improve Group operating margin
  • Generate a positive Automotive operational free cash flow





€ millionH1 2016H1 2015 restatedChangeH1 2015 published
Group revenues25,18522,197+2,98822,197

Operating profit
% of revenues

1,541           6.1%1,096        4.9%+445              +1.2 point


Other operating income and expenses items-65-116+51-116
Operating income1,476980+496953
Net financial income-67-161+94-161
Contribution from associated companies678895-217912
o/w : NISSAN749979-230979
Current and deferred taxes-520-262-258-235
Net income1,5671,452+1151,469
Net income, group share1,5011,379+1221,396
Automotive operational free cash flow+381-52+433-95



(1) Taxes, which satisfy the definition of tax based on a notion of net intermediate income within the meaning of IAS 12 "Income Tax" and which were previously presented as operating expenses, have been reclassified under current taxes from 2016 and conversely for taxes not satisfying the definition of tax based on net intermediate income. The presentation of the financial statements for the 1st half of the year and for 2015 were restated accordingly.

(2) Since December 31,2015, the AVTOVAZ accounts are included in the Group’s financial statements without any three-month lag, therefore, the previously published figures for the 1st half of 2015 regarding AVTOVAZ are restated so that the 1st half of 2015 covers the calendar period from January 1 to June 30.




The condensed half-year consolidated financial statements of the Renault group at June 30, 2016 were approved by the Board of Directors on July 27, 2016.

The Group’s statutory auditors have conducted a limited review of these financial statements and their half-year report will be issued shortly.

The financial report, with a complete analysis of the financial results in the first half of 2016, is available at in the Finance section.




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