On Tuesday, Renault (EPA:RENA) reported a 1.8% increase in first-quarter revenue, driven by higher sales from its financing arm due to rising interest rates, and a 2.6% increase in car sales volumes compared to the previous year.
Shares fell slightly by 0.5% in Paris trading.
The automaker announced that its total revenue for the quarter reached €11.7 billion, surpassing analysts' predictions of €11.4 billion.
However, automotive revenue dipped slightly by 0.7% to €10.47 billion, impacted by unfavorable exchange rates in markets like Argentina and Turkey, along with higher destocking by independent dealers compared to the first quarter of 2023.
Revenue from Renault's financing activities saw a significant boost, growing 27.9% to €1.25 billion, a rise attributed to the climbing interest rates.
Looking forward, Renault is optimistic about accelerating sales growth in 2024, thanks to the launch of several new models.
The French automaker reaffirmed its financial targets for the year, including a profit margin of 7.5% and a cash flow forecast of €2.5 billion, as it continues to implement cost reduction measures.
“Q1 revenue continues to illustrate the strict application of our commercial policy focused on value,” said Thierry Piéton, CFO of the Renault Group.
“The strong orderbook at the end of March and our upcoming launches will provide sequential acceleration in the activity. Coupled with an increase in cost reduction, they will drive our financial performance,” he added.