Fez – Morocco’s Renault Group has announced, through its Director and Industrial Pole Coordinator Mohamed Bachiri, exceptional financial performance for the year 2023, exceeding all expectations and setting new records in several key areas.
Bachiri said in a statement made public by Moroccan news outlet SNRT News, that financial results reveal strong progress in all indicators, with the group’s operating margin reaching 7.9% (up by 2.4 points compared to 2022), and an impressive free cash flow of 3 billion euros, surpassing the already optimistic financial outlook for 2023.
The group’s turnover saw a remarkable growth of 13.1% to reach 52.4 billion euros ($57 billion), benefiting from an increase of 17.9% at constant exchange rates compared to the previous year. This performance is supported by a significant improvement in the operating margin, which reached a record level of 4.1 billion euros , as well as by an Automotive operating margin estimated at 3.1 billion euros .
The group’s net profit for its part jumped to 2.3 billion euros , marking an increase of 3 billion euros compared to 2022, while the net financial position of automobiles reached historic levels of 3.7 billion euros , demonstrating the increased financial strength of the group.
The operational performance is complemented by a more than doubled Return on Capital Employed (ROCE), reaching 28.5% in 2023, and a robust order portfolio in Europe, signaling strong demand for the group’s products.
Renault Group also confirms its high-standing in the automobile market, with notable successes in the renewal of its range of vehicles and a significant improvement in its position on the European market.
Renault Group aims for an operating margin above 7.5% and free cash flow above 2.5 billion euros in 2024.
The announcement of a significantly higher dividend at 1.85 euros per share, compared to 0.25 euros in 2022, underlines the group’s confidence in its ability to generate value for its shareholders.
Renault Group’s strategy to maintain this positive dynamic is based on a product offensive with 10 launches planned in 2024 and an acceleration of cost reduction, underlining the group’s commitment to optimize its cost structure while pursuing innovation and operational effectiveness.
In Morocco, the Renault Group supplies 60% of the country’s vehicle components, most of which are destined for export. However, the company aims to increase this rate in order to lead the automotive industry in the Kingdom.
Renault’s success story in Morocco began when the French company landed in the city of Tangier and opened a car factory at a location near the Tangier Med industrial complex, less than 14km from Spain. It then had a capacity of 400,000 cars.
Having succeeded in Morocco, Renault has become a role model for other companies that have decided to venture into Morocco, thus exploring the automotive sector on the African continent.
Read also: Morocco Is Largest Market in Africa for Car Manufacturer Renault Group
