Renault raises 2023 outlook following success of new launches, shares jump

RENAULT shares jumped more than 7 per cent on Thursday (Jun 29) after it raised its 2023 financial outlook thanks to the success of new models, in particular the Austral SUV and a Dacia Jogger hybrid.

The French carmaker, which has been engaged for several years in a deep restructuring and a strategic repositioning to restore its margins, said it is now aiming for an operating margin of 7 per cent to 8 per cent by 2023, up from a previous target of more than 6 per cent.

“Renault Group upgrades its financial outlook for the year, thanks to the continuous efforts to reduce costs and to the unprecedented product offensive in the group’s history,” said chief executive officer Luca de Meo .

The group also said it now expects automotive operational free cash flow superior or equal to 2.5 billion euros (S$3.7 billion) in comparison to the previous target of free cash flow superior or equal to two billion euros. REUTERS