The group recorded a half-year net loss of 1.66 billion euros. Groupe Renault posted a net loss in the first half of the year, attributed to the exit of business operations in Russia following the Kremlin's invasion of Ukraine.
The loss amounted to EUR 1.36 billion, compared to EUR 354 million profit in the same period last year. The group recorded a half-year net loss of EUR 1.66 billion, including a EUR 2.3 billion loss from discontinued operations due to a non-cash adjustment related to the sale of Russian industrial activities.
But they hope that business will change. "After more than compensating for the loss of its activities in Russia and continuing its rapid transformation, Groupe Renault is improving its financial outlook for the full year 2022," said CEO Luca de Meo.
In the same six-month period last year, the group achieved a net profit of EUR 368 million. However, the group's net profit from continuing operations increased to EUR 657 million, compared to EUR 199 million in the same period last year.
Group revenue rose 0.3 percent to 21.1 billion euros in the first half, but global sales fell 11.9 percent over the period. Excluding the impact of currency changes, revenues increased by 1.1 percent.
CEO is optimistic
CEO Luca de Meo said the improving margins showed that a turnaround plan he initiated when he took over in 2020, focused on profitability over sales volumes, is delivering results ahead of schedule.
He said the company is moving from plan's emergency phase into a rebuilding phase. "After two years of sacrifices and a hard diet, we are now ready for the next chapter at Renault," he said on an analysts call after announcing first-half results on Friday.
De Meo said the company was three years ahead of schedule in hitting the plan's targets despite challenges the entire sector faces in obtaining the microchips used in everything from brake sensors to entertainment systems.
While the results surpassed expectations by many measures, Renault remains "a work in progress" compared to other automakers, RBC analyst Tom Narayan wrote in a note.