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Nissan reports April-June results for fiscal year 2023

Net revenue increased 37% year on year to 2,917.7 billion yen

Nissan Motor Co., Ltd. today announced financial results for the three months ended June 30, 2023.

In the first quarter of the fiscal year, consolidated net revenue was 2.92 trillion yen, consolidated operating profit was 128.6 billion yen, and operating profit margin was 4.4%. Net income1 in the first quarter was 105.5 billion yen.

Although sales volume in China declined due to the pandemic and intensified sales competition, other regions’ increased significantly year on year. In addition, the weakened yen combined with enhanced product pricing and strict financial discipline led to a significant increase in sales and profits.

First-quarter financial highlights

The following table summarizes Nissan’s financial results for the three months ended June 30, 2023, calculated under the equity accounting method for the group’s China joint venture.

(TSE report basis – China JV equity basis)2

Yen in billions FY22 Q1 FY23 Q1 Variance vs FY22
Revenue 2,137.3 2,917.7 +780.4
Operating profit 64.9 128.6 +63.7
Operating margin 3.0% 4.4% +1.4 points
Ordinary profit 104.0 166.6 +62.6
Net income1 47.1 105.5 +58.4

Based on average foreign exchange rates of JPY 137/USD and JPY 150/EUR for FY23 Q1

On a management pro forma basis, which includes the proportionate consolidation of results from Nissan’s joint venture operation in China, operating profit was 130.5 billion yen, equivalent to an operating margin of 4.2%. Net income1 amounted to 105.5 billion yen.

FY2023 outlook

Due to the decline in sales volume in China to date, Nissan expects sales volume to decrease by 7.5% from the previous forecast to 3.7 million units for the 12-month period ending March 31, 2024. However, despite negative impact of the decrease of sales volume, Nissan revised its full-year outlook as follows due to thorough financial discipline, and a revise of foreign exchange rates.

Nissan is forecasting net revenue of 12.6 trillion yen. The company foresees an operating profit of 550 billion yen, which is 30 billion yen better than the previous outlook. A net income1 of 340 billion yen is expected, which is 25 billion yen better than the previous outlook.

The company has filed the following fiscal-year outlook to the Tokyo Stock Exchange. Calculated under the equity accounting method for Nissan’s joint venture in China, the forecasts for the fiscal year ending March 31, 2024, are:

(TSE report basis – China JV equity basis)2

Yen in billions Previous FY23
outlook
Revised FY23
outlook
Variance
vs Previous outlook
Net revenue 12,400.0 12,600.0 +200.0
Operating profit 520.0 550.0 +30.0
Net income1 315.0 340.0 +25.0

Commenting on the results, Nissan president and CEO Makoto Uchida said: “In the first quarter, we were able to compensate for the sluggishness in the Chinese market by our performance in other regions, resulting in a significant year-on-year improvement. The recovery in production and sales in Japan and North America was of particularly note, and we aim to maintain this momentum in the second quarter and beyond. In China, where our sales have been declining, we are strengthening our product lineup by adding an e-POWER variant to the X-Trail and introducing a plug-in hybrid under the Venucia brand. As the business environment in China is changing drastically and competition is becoming fiercer, it will be difficult to rebuild our business overnight. We will accelerate the formulation and implementation of our medium-to-long-term strategy and steadily improve our profitability.”

  1. Net income attributable to owners of the parent
  2. Since the beginning of fiscal year 2013, Nissan has reported figures calculated under the equity method accounting for its joint venture with Dong Feng in China. Although net income reporting remains unchanged under this accounting method, the equity-accounting income statements no longer include Dong Feng-Nissan’s results in revenue and operating profit.

*The financial forecast is based on judgements and estimates that have been made using currently available information. By nature, such financial forecast is subject to uncertainty and risk. Therefore, the final results may differ from the aforementioned forecast.

SOURCE: Nissan

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