Renault SA has announced that it has returned to profits in 2021 and expects continued economic improvement in the future, but will not pay a dividend for the year.
The net profit of the French car manufacturer for 2021, amounted to 888 million Euros in relation to the losses of 8.01 billion Euros in 2020.
The amount was higher than the estimates for profits of 770.5 million Euros.
For 2021, Renault received a contribution of 380 million Euros from its partner Nissan Motor, in relation to the negative contribution in the previous year, due to impairments and restructuring costs.
Revenue for the year rose 6.3% to 46.2 billion euros from 43.47 billion euros, compared to analysts’ estimates for 45.49 billion euros.
Despite the improved financial situation, Renault stressed that it will not propose a dividend for 2021, like last year.
For 2022, Renault expects an operating margin of at least 4% from 3.6% in 2021.
In the second half, the margin reached 4.4%. The company also targets operating cash flows for the automotive sector, at least € 1 billion, up from € 1.72 billion in 2021.
However, the outlook is affected by the ongoing semiconductor crisis and higher raw material costs.
Source: Capital
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