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Group Renault In 1H2019: 6.7% Sales Reducing And Interesting “Electro” Perspectives For The Future

|About: Renault SA (RNLSY), RNSDF
Summary

Group`s general sales fell by 6.7% in 1H2019.

Group Renault continues to maintained its market share of 4.4%.

Sales of Renault`s electric vehicles increased significantly.

Last weekend I noticed that Group Renault had published its Earning Report for 1H2019. Taking into account my interests to the automobile market I would like to see and analyze the Group`s result in 1H 2019 and perspectives for the future.

At first, I looked at the last year dynamic of Renault`s share prices RNLSY and RNSDF:

As we can see the shares price decreased significantly in autumn 2018 and in May 2019 (it should be noticed, that at these periods were negative facts related to an Arrest of Renault-Nissan-Mitsubishi chairman in autumn 2018 and also Nissan`s prognosis about reducing of operating profit for 2019 which were published in May of this year).

But back to the Renault`s Earning Report.

According to the EARNING REPORT FIRST-HALF 2019 of the Group Renault, in 1H 2019 Worldwide Group sales fell by 6.7% compared to 1H 2018 (1.94 million vehicles against 2.08 million vehicles). The Group`s revenues in 1H 2019 were amounted to EUR 28 050 million and decreased by 6.4% compared to the same period in previous year. At the same time, the report noticed the Group maintained its market share of 4.4% despite no new products.

The TOP-5 regions of the Group`s sales were the following:

We are able to see the Company slightly increased sales in Russia, Germany and Brazil and decreased in France. In the Group`s report indicated that in 2019, the Global Automotive markets expected to decline by around - 3% compared to 2018, the European market is expected to be stable (excluding “hard Brexit”), the Russian market to be down by - 2 to - 3%. So the Group had not bad results in its main regions of sales.

The Group reported that sales remained stable in Europe in a market that fell by 2.5%. In regions outside Europe, the Group’s sales followed the sharply declining global trend.

But one of the interesting things, which I saw in the Group`s report, the sales of Renault`s electric vehicles. In the electric vehicle segment, Renault ZOE saw its volumes increase by 44.4% (25,041 vehicles) and Renault Kangoo Z.E. by 30.7% (4,653 vehicles). Earlier the group reported that it has a goal: making electric vehicles affordable for the widest possible public around the world.

I think, it’s a piece of good news for the Group`s investment appeal. In the future the Group Renault can realistically hold good positions for sales of standard cars in traditional regions and also extend sales of electric vehicles in “the new era of electromobiles”.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Additional disclosure: This article expresses my personal opinion and I don’t have any business relation with mentioned companies.