What happened? Renault just held its Q4 group pre-close call (sell-side only) ahead of results on 20th February. The company confirms its FY24 guidance (7.5% operating margin, EUR 2.5bn Auto FCF). Detailed feedback is included below, but the key points are:
. CFO change: Duncan Minto (Alpine CFO) has been appointed as CFO, replacing Thierry Pieton, who will be leaving for a new opportunity in a different sector on Feb 28th which will be announced shortly.
. Operations: Volume momentum supported by solid order book at 2 months'' of sales. Inventory rising to support product launches, but quality is high with average age of inventory quite low. Pricing no longer a tailwind, being offset with cost savings.
. EV and Emissions: Strong increase in BEV mix in Q4, and stick to target to break-even in Ampere in 2025. Continue to seek ''regulatory visibility''.
Detailed feedback:
. FY24 guidance: Confirmed on all metrics: 7.0% operating margin, EUR 2.5bn Auto FCF.
. CFO: Outgoing CFO states that the company is in its best shape ever, and will shape the industry for tomorrow - says he leaves the company in a fantastic state. Duncan Minto, the new CFO, has been CFO of Asia-Pacific, and of Dacia / Alpine, and was previously Head of IR many years ago.
. EV offensive continues. Electrified mix at 35% in EU, EV 9%, HEV 26%. RBO brand no.2 in Europe. Renault 5 the most sold EV in France in Nov/Dec. Q4 BEV mix should see strong improvement thx to Scenic, R5, and soon R4, plus Dacia Spring. Confirm Ampere breakeven target for 2025, helped by ongoing cost drive (total target is 40% cost reduction)
. Emissions: Continue to ask for visibility on regulations. Luca de Meo has been on vocal on need for change. Too early to comment on pooling. Renault commits to being compliant. IR says would need 20-22% BEV mix to be compliant (vs 9% in 2024).
. Orders: Continues to be solid at c.2 months of sales.
. Volume: Turning positive in Q4''24 due to impact of new launches....
