Renault's Q1 revenues held back by FX movements

French carmaker Renault beat forecasts with its first-quarter results, though shares fell as sales from the automotive division were held back by currency movements.

Group turnover totalled €11.71bn, up 1.8% on the same period in 2023 and comfortably ahead of the €11.55bn consensus forecast.

Group sales increased 2.6% year-on-year to 549,009 units, with growth in Europe up 4.3%.

However, while revenues jumped in the smaller Mobility Services (+66.7%) and Mobilize Financial Services (+27.9%) divisions – which together make up 11% of group sales – turnover from the automotive division fell by 0.7% year-on-year to €10.45bn.

The company said the decline this was mainly related to the devaluation of the Argentinean peso and to a lesser extent to the Turkish lira. At constant exchange rates, automotive sales would have risen by 3.6%.

Looking ahead, Renault retained its full-year guidance for operating margins of at least 7.5% and free cash flow of at least €2.5bn.

The company expects 2024 to be a "historic year" with 10 new vehicle launches: seven under the Renault brand, two from Dacia brand and one from Alpine.

Renault shares were down 0.3% at €47.33 by 1056 in Paris, though the stock has surged by more than a quarter since the start of the year.