PARIS, France – In morning trade on Thursday, Renault’s stock surged after the French carmaker announced plans to propose an increase in its dividend per share for the financial year. The proposed dividend per share is set to rise to 1.85 euros ($1.99), a significant jump from the previous 0.25 euros.
This positive news contributed to a 6.9% increase in Paris-listed shares at 9:27 a.m. London time. The company reported a full-year group operating margin of 7.9%, which is at the higher end of its prior guidance. Renault aims to achieve double-digit margins by 2030.
In addition to its operating margin, the company also revealed a 13% increase in group revenue to 52.4 billion euros. However, its net profit fell slightly below forecasts according to reports from Reuters. Despite this, Renault remains focused on achieving a group operating margin at or above 7.5% and free cash flow of at least 2.5 billion euros in 2024.
The company’s main focus moving forward will be on the launch of 10 upcoming vehicle models and its efforts to optimize its cost structure. Renault will also prioritize the acceleration of its electric vehicle (EV) and software strategy. The CEO emphasized that the company is entering a favorable product lifecycle, with plans to launch a new model every month, including EV cars.
Overall, Renault’s shareholders have shown support for the proposed increase in dividends and the improvement in operating margins to 7.9%. However, CEO Luca de Meo acknowledged the challenges in the EV space, citing increasing cost-consciousness among consumers and pressure on pricing. The company’s strategic focus on EVs and new vehicle launches aims to navigate these challenges and maintain a competitive edge in the market.