Renault Margin Breaks Record After Revenue Rises Despite Currency Woes

By David Sachs

Renault backed its guidance for the year after breaking its profitability record in the first half despite a hit from currency headwinds.

The French carmaker said late Wednesday that its operating margin--its key profitability metric--hit a record 8.1% in the first half, ahead of the 7.6% margin it reported a year earlier.

The company credited its performance to cost reductions, a favorable sales mix and solid price positioning that offset lower automotive revenue stemming from the devaluation of the Argentine peso and Turkish lira.

Group revenue rose to 26.96 billion euros ($29.26 billion) from EUR26.85 billion in the first half of 2023, Renault said. Analysts had expected revenue to finish the period at EUR26.795 billion, according to the Visible Alpha consensus.

The carmaker backed its guidance of an operating margin of at least 7.5% and free cash flow of at least EUR2.5 billion.

Write to David Sachs at david.sachs@wsj.com

(END) Dow Jones Newswires

July 24, 2024 12:49 ET (16:49 GMT)

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