Renault reported a record operating margin on Wednesday, the fruit of its strategic plan focused on cost reductions and the most profitable models, and proposed to pay a more generous dividend than expected to its shareholders.

The group, which aims to join the club of automakers with double-digit margins like Stellantis by the end of the decade, posted an operating margin of 7.9% last year, compared with 5.5% in 2022 and 2.8% in 2021.

"(Our results) reflect the success of our Renaulution strategy," said CEO Luca de Meo, quoted in a statement. "Our fundamentals have never been stronger, and there's no question of stopping there."

Buoyed by its 2023 results, the French carmaker is proposing to pay a "significantly higher" dividend of 1.85 euros, following the return of a token payment the previous year and three years without a dividend.

An LSEG consensus based on responses from 18 analysts suggested a dividend of 1.44 euros. (Report by Gilles Guillaume)