Renault reported a significant financial impact in the first half of the year, with a loss of 1,666 million euros largely driven by the accounting consequence of exiting its operations in Russia. The negative charge, totaling 2,323 million euros, reflects an exceptional non-cash write-off for abandoned activities. Excluding this charge, the group would have posted a net profit of 657 million euros, contrasting with 199 million in the same period of 2021, according to a statement released on Friday.
For the January-to-June period, Renault posted revenue of 21,121 million euros, up 0.3% from a year earlier. The period also delivered an operating profit of 988 million euros, equal to 4.7% of turnover, more than doubling the prior year’s figure. The company also showed a notable improvement in operating cash flow, advancing to 956 million euros from 514 million euros a year earlier. This financial dynamics underscores how Renault navigated a challenging mix of supply constraints, cost pressures, and strategic repositioning while continuing to monetize its product lineup and market presence.
Based on these results, Renault reiterated an optimistic stance for the full-year 2022, projecting an operating margin above 5% and an operating cash flow exceeding 1,500 million euros. The outlook reflects a combination of efficiency gains, ongoing product momentum, and selective geographic exposure adjustments designed to preserve profitability amid a volatile global environment. Market observers note that the company remains focused on capital discipline and cash generation as key levers to sustain performance in the face of external headwinds.
Renault formally ceased its operations in Russia, a decision aligned with international sanctions and the broader geopolitical disruptions following the invasion of Ukraine. The move also left open the possibility of future reconsideration should conditions improve. In Russia, Renault had controlled Avtovaz, the nation’s leading automaker and the pillar of the Lada brand, making the market its second-largest national market after France. The exit marks a significant realignment of Renault’s regional footprint and a rebalancing of its global strategy as the company recalibrates its exposure to complex regulatory and economic environments while continuing to pursue growth in other regions.
Chief Executive Officer Luca de Meo emphasized that despite the headwinds from the Russia exit, the global semiconductor shortage and rising input costs, the group is steadily improving its operating results. He noted the early benefits from new launches and the ongoing ability to translate product-cycle momentum into earnings strength. The leadership message highlights a pragmatic approach to navigating disruption, maintaining focus on core brands, and leveraging Renault’s global scale to support profitability and resilience across the business.