Renault shares rose in Thursday morning trading after the French carmaker announced it would propose raising its dividend per share for the fiscal year to 1.85 euros ($1.99) from the previous 0.25 euros.
The Paris-listed stock was up 6.9% as of 9:27 a.m. London time.
Wednesday’s company report Full-year group operating profit margin was 7.9%, close to the high end of previous guidance. The company reiterated its goal of achieving double-digit profit margins by 2030.
Group revenue rose 13% to 52.4 billion euros, but net profit was slightly lower than expected, Reuters reported.
The company aims to achieve a group operating margin of at least 7.5% and free cash flow of at least 2.5 billion euros in 2024, up from 3 billion euros in 2023. The company said it will now focus on launching 10 “unprecedented” new vehicles. , about optimizing cost structures, accelerating electric vehicle (EV) and software strategies.
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Renault stock price.
Renault shares have risen 2% since the beginning of the year, according to LSEG data. The company posted gains in January after it scrapped plans to list its new electric vehicle and software business Ampere.
Group CEO Luca de Meo told CNBC’s “Squawk Box Europe” on Thursday that Renault’s guidance is “relatively cautious” and that the market is “challenging.” Stated.
“There will be a lot of pressure on EVs and there will be price reductions that we have already seen for several months… But on the other hand, we are optimistic because we plan to launch 10 models, basically one every month. “Therefore, we are entering into a very favorable product life cycle, including EV vehicles,” he said.
Susannah Streeter, head of money markets at Hargreaves Lansdown, said in an email: “Renault shareholders have welcomed the proposed dividend increase, which is evident in the progress made in improving operating margins to 7.9%. I am encouraged by this,” he said.
“It’s no secret that the EV industry remains in quite a tough spot at the moment, and CEO Luca de Meo hasn’t shied away from the challenge. Amid economic headwinds, motorists are becoming increasingly cost-conscious. competitors are lowering their prices.”
