Renault announces heavy losses and proposes two new directors

  •   19/02/2021 - 09h54
  •   HARMANT Adeline

On the morning of Friday, February 19, 2021, the Renault group issued two important press releases. The first of course concerns its results for the year 2020 which, unsurprisingly, show significant losses. The second concerns two new directors proposed to head the group. Let's go back over these two events and their details.

Renault announces heavy losses and proposes two new directors
Image copyright: Ivan Radic - Flickr

Significant net losses for Renault in 2020:

First of all, let's look at the results for the year 2020 that the French carmaker published early this morning. The group's balance sheet shows a net loss of 8.05 billion euros for the past year, whereas it made a profit of 19 million euros in 2019. The operating margin, for its part, stands at -0.8% of turnover in 2020 and was +4.8% the previous year.

In more detail, Group sales fell sharply with a loss of 21.7% compared to last year, or 18.2% at comparable exchange rates. This represents a turnover of 43.5 billion euros with sales volumes down 21.3% to 2.95 million vehicles for the year.

Following these results, which are certainly anticipated but are nevertheless particularly negative, the Group's Board of Directors intends to propose, at the General Meeting on 23 April, that no dividend be paid for the financial year 2020.

The Renault group has also communicated its objectives for 2023, which remain unchanged with the Renaulution plan, which calls in particular for a group operating margin above 3% by 2023.

 

The Renault group proposes two new directors:

The other news published this morning directly following the publication of these results concerns the announcement that its Board of Directors has decided, on the recommendations of the Governance and Compensation Committee, to make a further proposal at the Annual General Meeting scheduled for April 23. This is to propose the appointment of Bernard Delpit and Fréderic Mazzella as new independent directors.

As far as these two candidates are concerned, we know that Bernard Delpit is currently the Deputy Chief Executive Officer and Chief Financial Officer of the Safran group. Finally, as far as Fréderic Mazzela is concerned, he is currently the founding chairman of Blablacar but also the entrepreneurial co-chairman of France Digital, which is none other than the largest association of start-ups in Europe.

On the other hand, it should also be noted that Patrick Thomas also announced this morning his decision to make his mandate available to the board in anticipation of the 2021 general meeting.

A final piece of information will have to be voted on at this meeting. Indeed, the Group's Board also intends to propose Noël Desgrippes as a candidate for the position of director representing employee shareholders. This general meeting will therefore have to be followed closely.