Renault Ireland posts strong operating profit return

Renault group’s Irish retail arm returned to operating profit last year as revenues rose 30% to €31.6m.

New figures lodged with the Companies Office show that Renault Retail Group Ireland Ltd’s revenues increased from €24.4m to €31.6m in the 12 months to the end of December.

This coincided with the French-owned firm recording an operating profit of €8,287 following an operating loss of €371,977 in 2013.

The firm recorded a pre-tax loss of €117,391, however, as a result of interest charges of €125,678. The pre-tax losses represent a 74% reduction on the pre-tax losses of €456,801 in 2013.

Sales of Renault cars in Ireland last year rose 47% going from 3,321 in 2013 to 4,881.

The firm’s most popular model was the Clio, which accounted for 36% of all sales while new model, the Renault Captur accounted for 22.7% followed closely by the Fluence making up of 22.19% of Renault sales.

Statistics from the Society of the Irish Motor Industry show car sales of Renault models have increased by 27% or from 3,209 to 4,075 for the first five months of this year with the Clio again the bestselling model, securing 36% of total sales.

Renault’s share of the market in 2015 lies at 5% trailing behind Opel, Skoda, Nissan, Hyundai, Ford, Toyota and market leader Volkswagen.

On the risks faced by the firm, the directors said the business is cyclical and volatile and it involves significant cash flows and investment in working capital.