The Japanese automaker has revised upwards its full-year revenue and profit outlook despite declining sales in China owing to intensifying competition from local brands.
09 Nov 2023 | 2538 Views | By Autocar Professional Bureau
Nissan Motor Corporation has announced its H1 (April-September 2023) FY23 results, and the Japanese automaker has reported a 30 percent year-on-year growth in its revenues, which stood at 6.06 trillion yen (H1 FY22: 4.66 trillion yen). The company’s operating profit also doubled from 156.6 billion yen in H1 FY22 to ...
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Nissan Motor Corporation has announced its H1 (April-September 2023) FY23 results, and the Japanese automaker has reported a 30 percent year-on-year growth in its revenues, which stood at 6.06 trillion yen (H1 FY22: 4.66 trillion yen). The company’s operating profit also doubled from 156.6 billion yen in H1 FY22 to 336.7 billion yen in H1 FY23.
Although its sales in China declined due to intensifying competition from local brands in the shift towards new-energy vehicles, the company's sales in other markets grew significantly in the first half of this year. The increased revenue and operating profit were driven primarily by an improved operational performance, and higher year-on-year consolidated unit sales, Nissan says. The company’s operating margin grew by 2.2 percentage points to 5.6 percent in H1 FY23.
For the second quarter (July-September 2023) of FY23, Nissan Motor Corporation reported consolidated net revenue of 3.14 trillion yen (Q2 FY22: 2.52 trillion yen / +25%), with consolidated operating profit of 208.1 billion yen (Q2 FY22: 91.7 billion yen / +127%), representing an operating profit margin of 6.6 percent.
Revised FY2023 outlook
Despite decline in China volumes, Nissan has revised upward its full-year forecast for fiscal 2023, reflecting expectations of further improvements in global retail sales (excluding China) and positive foreign exchange benefits in the first half of 2023. The revised forecast anticipates a 400-billion-yen upward adjustment in net revenue, a 70 billion yen increase in operating profit to 620 billion yen, with net profit expected to increase by 50 billion yen to 390 billion yen.
The company has filed the following fiscal-year outlook with 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 include a net revenue of 13 trillion yen – an 8.33 percent upwards revision over earlier forecast of 12 trillion yen.
According to Makoto Uchida, “We have made substantial year-on-year operating profit improvements in the final year of our ‘Nissan NEXT’ transformation plan. This puts us on track towards delivering our targets and achieving sustainable growth. We are also taking strategic actions to enhance our operations in China, including the launch of four New Energy Vehicles starting from the second half of 2024. Combined, these steps demonstrate continued progress in realizing our long-term vision, Nissan Ambition 2030.”