In the first half of 2016, Renault Group revenues came to €25,185 million, up 13.5% compared with the first half of 2015.
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Automotive revenues amounted to €24,078 million, up 14.3% thanks to an increase in the group's brand volumes (+10.6 points) and sales to partners (+3 points). The price effect was positive (+3.8 points), primarily due to price increases in some emerging markets to offset currency devaluation (-4.9 points). The mix effect is positive at 1.8 points.
The Group's operating profit amounted to €1,541 million (+40.6%), compared with €1,096 million in the first half of 2015, and represents 6.1% of revenues (4.9%1 in the first half of 2015).
The Automotive operating profit was up €441 million (+64.9%) to €1,121 million and reached 4.7% of revenues, compared with 3.2% in the first half of 2015. This performance can be explained mainly by strong business growth (€614 million positive impact), higher prices and an improved mix.
The currency impact is unfavorable (-€432 million), mainly due to the depreciation of the Argentinian peso, the Russian rouble and the British pound.
However, raw materials had a positive effect of €164 million. The positive mix/price/enrichment effect of €135 million was a marked improvement compared with the first half of 2015, thanks in particular to the success of company's new models.
Cost reductions were affected by the increase in R&D expenses to prepare the future, the decrease in their capitalization rate, and higher than usual start-up costs due to the large number of launches.
Sales Financing contributed €420 million to the Group's operating margin, compared with €416 million1 in the first half of 2015. This stable profit is related to the sharp increase in loans outstanding, but negatively impacted by adverse currency evolution and the decrease in Americas’ business.
However, the cost of risk stabilized at a very good level of 0.30% of the average performing assets (0.31% in the first half of 2015). ■