Renault Reports Strong Revenue Growth Despite Net Income Drop

Renault's fiscal 2024 shows resilience with a notable revenue growth of 7.4%. However, net income faced a decline to 752 million euros from 2.2 billion euros last year. Investors should note the mixed signals from this report.

Date: 20-02-2025

AI Rating: 6

Net Income Analysis: Renault Group reported a net income of 752 million euros in fiscal 2024, a significant decrease from last year's 2.2 billion euros. Excluding certain factors, the adjusted net income was 2.8 billion euros, which is an improvement from 2.3 billion euros the previous year. This suggests that while the overall net income appears alarming, the underlying performance excluding specific items has seen positive growth.

Revenue Growth: The company reported a revenue of 56.23 billion euros, which is a 7.4% increase compared to the previous year. When adjusted for constant exchange rates, this growth is reported at 9.0%. This positive trend indicates a healthy demand and effective sales strategies.

Automotive Revenue: The automotive revenue reached 50.52 billion euros, up 4.9%. This consistent growth in automotive sales highlights the company's strength in its core operations despite challenges in net income.

Dividend Declaration: Renault proposed a dividend of 2.20 euros per share, which reflects a 19% increase from last year. This move could signal to investors that the company remains committed to returning value, indicating confidence in future performance despite the current mixed results.

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