Renault: Turnaround Progresses With Solid Revenue Gain on Volume, Price, and Mix

No-moat Renault reported first-half earnings per share of EUR 7.59, up EUR 5.28 compared with the prior year and slightly better than we had expected. Group revenue of EUR 26.8 billion was up 27% from the prior year, but, excluding unfavorable currency, revenue jumped 30%. Automotive revenue was also 30% higher excluding currency. The “Renaulution” turnaround plan to improve pricing and mix supported 12 percentage points of the automotive revenue increase. Because the chip shortage was more acute in the year-ago period, volume added 15 percentage points. The French automaker discloses only revenue in the first and third quarters while full financial statements are reported for the half and full year.