renault-posts-2020-net-loss-of-eur8bn

Renault posts 2020 net loss of EUR8bn

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Renault has recorded a 2020 net loss of EUR8.05bn (US$9.8bn), with Group revenue falling 21% to EUR43.5bn.

Sales were also down 21.3% to 2.95m units.

The French automaker nonetheless said strong improvement in operating profitability in the second half shows the first positive impacts of the actions taken in the context of a year heavily impacted by COVID-19.

“After a first half impacted by the Covid-19, the Group has significantly turned around its performance in the second half,” said Renault CEO, Luca de Meo. “This result is the fruit of all employees’ efforts, the successful acceleration on our fixed cost cutting plan and pricing policy improvement.

“The priority is profitability and cash generation, as announced during our strategic plan, ‘Renaulution.’ 2021 is set to be difficult given the unknowns regarding the health crisis as well as electronic components supply shortages.

“We will face these challenges collectively, keeping the momentum towards recovery we’ve been successfully engaged in since last summer.”

Outlook:

  • Groupe Renault confirms the 2023 objectives communicated in the “Renaulution” strategic plan:
  • Group operating margin above 3% by 2023
  • Cumulative automotive operational free cash flow (2021-23) around EUR3bn
  • Investments (R&D and capex) at about 8% of revenues by 2023

Show the press release

https://en.media.groupe.renault.com/news/2020-financial-results-a-year-of-contrasts-a0ac-989c5.html

Original source: https://en.media.groupe.renault.com/news/2020-financial-results-a-year-of-contrasts-a0ac-989c5.html