Renault Group posted a loss of €1,357 million due to the disposals of the Russian industrial activities
At group level, Renault revenue reached €21,121 million, up 0.3% compared to 2021 H1 while Automotive revenue stood at €19,574 million, up 0.3% compared to 2021 H1.
The price effect, positive by +7.4 points, reflected the continuation of the commercial policy, launched in 2020 Q3, focused on value over volume as well as price increases to offset cost inflation, and an optimization of commercial discounts. It amounted to +8.4 points in 2022 Q2 after +5.6 points in Q1.
The success of Arkana, launched in 2021 Q2, as well as those of Jogger and Megane E-TECH Electric in H1, emphasized the renewal of Renault brand in the C segment and contributed to generate a positive product mix effect of +3.3 points.
These two effects make it possible to compensate for the loss of volume of -5.2 points, which is mainly explained by the decline of the European automotive market in connection with the shortage of semiconductors.
The impact of sales to partners, negative by -1.8 points, is mainly due to the decrease in production of diesel engines.
The Grouprecorded a positive operating margin of €988million (4.7%of revenue) versus €432million in 2021 H1(+2.6 points).
Automotive operating margin improved by €565 millionto €420million (2.1% of Automotive revenue, or +2.8 points versus 2021 H1). The positive mix/price/enrichment effect of +€1,548million illustrates the successof the commercial policy focused on value over volume.
This policy more than offset the negative volume effect of -€270 million and the increase in costs (raw materials, purchasing, warranty and manufacturing & logistics costs) which amounted to -€647million. The latter is mainly explained by the sharp increase in raw materials prices (-€797 million), partially offset by the performance of purchasing (+€167 million).
Net income from continuing operations was €657 million, up by €458 million compared to 2021 H1. Net income from discontinued operations amounted to -€2.3 billion due to the non-cash adjustment related to the disposals of the Russian industrial activities.
Thus, net income was -€1,666 million and net income, Group share, was -€1,357 million (or -€4.98 per share).