Groupe revenues of €11.5 billion in the third quarter of 2018

Groupe Renault’s worldwide registrations (passenger cars + light commercial vehicles, including Jinbei and Huasong since January 1, 2018) rose by 2.9% in the third quarter, in a market down 2.4%, resulting in a market share of 4.0% (+0.2 points compared to 2017)

Groupe Renault’s worldwide registrations (passenger cars + light commercial vehicles, including Jinbei and Huasong since January 1, 2018) rose by 2.9% in the third quarter, in a market down 2.4%, resulting in a market share of 4.0% (+0.2 points compared to 2017).

In Europe, Group registrations increased by 8.6% in a market up 0.8%, mainly due to the success of the B segment models (Clio, Captur) and C segment models (Mégane and New Duster). In the electric vehicle segment, ZOE recorded registrations up 7% and Kangoo Z.E. doubled its sales.

Outside Europe, in a market down 3%, Group registrations decreased by 2%, including Jinbei and Huasong (-10.4% excluding Jinbei and Huasong).

In the Americas, Group registrations were up 0.2% despite the fall in the Argentinian market (-24.9%). In Asia-Pacific, the increase was 72%, including Jinbei and Huasong (-14.8% on an equivalent basis in 2017).

The Group faced a slowdown of its registrations in Africa, Middle East, India (-24.4%) and Eurasia (-5.6%) regions. The Africa Middle East India region was mainly impacted by a decline in India (-34.7%) and in Iran, where our activity was stopped. In Eurasia, registrations continued to increase in Russia (+5.0%), but Turkey sales are down 52.5% in a market down 51.3%.

THIRD QUARTER REVENUES BY OPERATING SECTOR

In the third quarter of 2018, Group revenues reached €11,484 million (-6.0%). At constant exchange rates and perimeter4, Group revenues decreased by 1.4%.

As of January 1, 2018, the Group changed the allocation of interest rate subsidies between operating segments, with no impact on consolidated revenues. On a comparable basis, Automotive excluding AVTOVAZ revenues would have been €142 million (1.3 points) higher, offset by an equal decrease in Sales Financing revenues.

Automotive excluding AVTOVAZ revenues amounted to €10,057 million, down 8.4%. Beyond the negative 1.3 points effect mentioned above, revenues were negatively impacted by the sharp devaluation of the Group’s main currencies (Argentinian peso, Brazilian real, Turkish lira, Russian ruble), which led to a negative currency effect of 4.0 points. The pricing policy notably implemented in these countries led to a positive price effect of 1.6 points. The volume effect weighed in at -2.6 points, mainly due to the fall in the Turkish and Argentinian markets and a destocking of the dealer network in the third quarter. Finally, the decline in our sales to partners impacted revenues by -3.3 points due to the cessation of our deliveries in Iran, lower demand for diesel engines and lower production for Nissan.

Sales Financing (RCI Banque) posted revenues of €800 million in the third quarter, up 31.1% compared to 2017. Excluding the impact of the accounting change mentioned above, the increase would have been 7.9%. The number of new financing contracts fell 2.5%, mainly due to lower activity in Turkey and Argentina. Average performing assets increased by 12.9% to €45.3 billion.

AVTOVAZ contribution to Group revenues amounted to €627 million in the quarter, down 1.1%, after taking into account a negative exchange rate effect of -€79 million. At constant exchange rates, revenues would have been up 11.4%.

OUTLOOK 2018

The global market is expected to grow 2% compared to 2017 (previously +3%). The European market is expected to expand more than 1.5% (versus +1.5%) with an increase of more than 4% for France (versus +2%).

Outside Europe, Brazil is expected to grow by 10% and Russia by more than 10%. China is expected to grow by 2% (versus +5%), and India by 8%.

Within this context, Groupe Renault confirms its guidance:

  • Increase Group revenues (at constant exchange rates and perimeter¹)*
  • Maintain Group operating margin above 6.0%*
  • Generate a positive Automotive operational free cash flow

* Excluding IFRS 15 impact

GROUPE RENAULT CONSOLIDATED REVENUES

 (€ million) 2018 2017 Change

2018/2017

Q1
Automotive excluding AVTOVAZ 11,646 11,939 -2.5%
Sales Financing 793  621 +27.7%
AVTOVAZ 716 569 +25.8%
Total 13,155 13,129 +0.2%
Q2
Automotive excluding AVTOVAZ 15,221 15,056 +1.1%
Sales Financing 820 630 +30.2%
AVTOVAZ 761 722 +5.4%
Total 16,802 16,408 +2.4%
Q3
Automotive excluding AVTOVAZ 10,057 10,974 -8.4%
Sales Financing 800 610 +31.1%
AVTOVAZ 627 634 -1.1%
Total 11,484 12,218 -6.0%
9 months YTD
Automotive excluding AVTOVAZ 36,924 37,969 -2.8%
Sales Financing 2,413 1,861 +29.7%
AVTOVAZ 2,104 1,925 +9.3%
Total 41,441 41,755 -0.8%

TOTAL GROUP’S REGISTRATIONS PC+LCV BY REGION

Q3 Ytd end of September
2018 2017 % var. 2018 2017 % var.
France 142,320 130,896 8.7% 531,536 498,898 6.5%
Europe (Excl France) 289,332 266,490 8.6% 971,200 924,046 5.1%
France + Europe Total 431,652 397,386 8.6% 1,502,736 1,422,944 5.6%
Africa Middle East India 97,101 128,503 -24.4% 348,544 380,234 -8.3%
Eurasia 174,710 185,153 -5.6% 546,469 508,204 7.5%
Americas 110,709 110,523 0.2% 325,074 292,115 11.3%
Asia Pacific 77,367 44,981 72.0% 247,695 145,446 70.3%
Total Excl France + Europe 459,887 469,160 -2.0% 1,467,782 1,325,999 10.7%
World 891,539 866,546 2.9% 2,970,518 2,748,943 8.1%

TOTAL REGISTRATIONS BY BRAND

Q3 YtD end of September
2018 2017 % var 2018 2017 % var
RENAULT
PC 491,705 516,394 -4.8% 1,667,030 1,660,735 0.4%
LCV 86,823 89,598 -3.1% 301,305 291,145 3.5%
PC+LCV 578,528 605,992 -4.5% 1,968,335 1,951,880 0.8%
RENAULT SAMSUNG MOTORS
PC 20,218 22,137 -8.7% 58,798 74,913 -21.5%
DACIA
PC 141,694 140,918 0.6% 496,857 451,569 10.0%
LCV 10,387 10,018 3.7% 33,439 32,730 2.2%
PC+LCV 152,081 150,936 0.8% 530,296 484,299 9.5%
LADA
PC 97,103 85,331 13.8% 276,842 230,163 20.3%
LCV 3,185 2,150 48.1% 9,919 7,688 29.0%
PC+LCV 100,288 87,481 14.6% 286,761 237,851 20.6%
ALPINE
PC 751 1,388
JINBEI&HUASONG
PC 1,892 10,549
LCV 37,781 114,391
PC+LCV 39,673 124,940
GROUPE RENAULT , , , , ,
PC 753,363 764,780 -1.5% 2,511,464 2,417,380 3.9%
LCV 138,176 101,766 35.8% 459,054 331,563 38.5%
PC+LCV 891,539 866,546 2.9% 2,970,518 2,748,943 8.1%

GROUPE RENAULT’S TOP FIFTEEN MARKETS YEAR-TO-DATE SEPTEMBER 2018

Year-to-date 09-2018 Volumes* PC+LCV M/S
(units) (in %)
1 FRANCE 531,536 26.59
2 RUSSIA 362,423 27.93
3 GERMANY 188,397 6.54
4 CHINA 167,908 0.86
5 ITALY 161,267 9.98
6 BRAZIL 152,235 8.56
7 SPAIN+CANARY ISLANDS 147,406 12.24
8 ARGENTINA 96,938 14.66
9 IRAN 96,000 10.00
10 TURKEY 88,677 19.13
11 UNITED KINGDOM 80,719 3.68
12 BELGIUM+LUXEMBOURG 72,378 12.81
13 SOUTH KOREA 62,343 4.77
14 INDIA 61,905 2.04
15 MOROCCO 54,958 43.00

* Registrations, excl. Twizy

SOURCE: 

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