BOULOGNEBILLANCOURT, FRANCE: French automaker Renault said on Thursday that it boosted manufacturing profitability in 2022 but the sale of its operations in Russia pushed the company into a net loss.
The group rose its operating profit margin to 5.6 percent of sales last year and aims to increase it to at least 6.0 percent this year. Meanwhile sales surged by 11.4 percent to 46.4 billion euros ($49.7 billion).
The company’s chief executive Luca de Meo said in a statement: “2022 has more than kept its promises: with results above our initial objectives and market expectations.”
“Renault’s performance reflects the energy and hard work of the its teams even as we have faced strong headwinds with regard to the disposal of our operations in Russia, the semiconductor crisis and cost inflation,” he added.
The automobile firm handed over its 68 percent stake in AvtoVAZ, Russia’s largest carmaker with the country’s top brand Lada, to the Russian government in May as it exit the country alongside a number of other companies over Moscow’s military intervention in Ukraine.
Renault lost 338mn euros amid Russia exit
Russia exodus pushed Renault into a net loss of 338 million euros for the year.
Despite the setback, de Meo said “Renault Group’s fundamentals have been thoroughly cleaned up and there will be no turning back.”
The company decided to propose a dividend of 0.25 euros per share, the first time it will pay out to shareholders since 2019. — AFP/APP
