Renault shares plummet 17% after profit warning and weak results
According to the carmaker's statement, it now expects an operating margin for the 2025 fiscal year of around 6.5%, down from over 7% previously. That is linked to "the deterioration of the automotive market trends", "increasing commercial pressure from...competitors" and a predicted "continuation of the retail market decline".
Free cash-flow is projected to come in between €1 billion and €1.5bn, down from over €2bn.
Renault Group revealed that in the first half of its financial year, revenue increased by 2.5% to €27.6bn. However, its free cash flow reached only €47 million, far below financial analysts' expectations.**
Renault Group is also strengthening its short-term cost reduction plan. This is going to focus on its selling, general, and administrative expenses (SG&A) or overhead expenses that keep the business running, but also manufacturing and R&D savings.
CFO appointed interim CEO
Meanwhile, the company has also yet to find a successor to CEO Luca de Meo, a month after his departure was announced.
Renault Group has appointed Duncan Minto, its Chief Financial Officer, as interim CEO.
'The selection process for the new Chief Executive Officer is already well underway,' the company added in a statement.
The Italian businessman Luca de Meo, who has been the CEO of Renault since 2020, officially left the automaker on Tuesday and will take over at luxury group Kering in mid-September.
Until a new Renault CEO is appointed, Duncan Minto will ensure the day-to-day management of the company alongside Jean-Dominique Senard, Chairman of the board of directors of Renault Group.
The carmaker will publish its half-year results on 31 July.
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