Nissan Motor Co., Ltd. has announced its financial results for the first quarter. The automaker reported consolidated net revenue of 2.998 trillion yen, an increase of 80.7 billion yen compared to the same period last year. Despite this revenue growth, consolidated operating profit plummeted to 1.0 billion yen from 128.6 billion yen in Q1 FY23, highlighting significant financial challenges.
Q1 Financial Performance:
- Net Revenue: 2.998 trillion yen (+80.7 billion yen)
- Operating Profit: 1.0 billion yen (-127.6 billion yen)
- Operating Margin: 0.0% (-4.4 points)
- Ordinary Profit: 65.1 billion yen (-101.5 billion yen)
- Net Income: 28.6 billion yen (-76.9 billion yen)
Global sales remained steady at 787,000 units, consistent with the previous year. However, profitability was adversely affected by heightened sales incentives and marketing expenditures aimed at navigating intense sales competition and optimizing inventory, particularly within the U.S. market.
Nissan’s President and CEO, Makoto Uchida, commented on the challenging quarter, attributing the downturn to specific factors and outlining measures to improve performance. “The reasons are clear, and we have implemented measures to recover our performance. First, we are optimizing the inventory buildup in the U.S. market and bringing VME efficiency with a focus on the quality of sales. Then, from the second half, we aim to maximize sales of new and refreshed models to achieve the revised forecast of sales volume and profit,” Uchida stated.
Revised FY2024 Outlook:
- Retail Sales: 3.65 million units
- Production: 3.45 million units
- Net Revenue: 14.0 trillion yen
- Operating Profit: 500 billion yen
- Net Income: 300 billion yen
Nissan has adjusted its fiscal-year outlook, now forecasting a net revenue increase to 14.0 trillion yen, up from 13.6 trillion yen. However, the operating profit projection has been revised down to 500 billion yen from 600 billion yen, and net income is expected to decrease to 300 billion yen from the previous forecast of 380 billion yen.
The revised outlook is based on new average foreign exchange rate assumptions of 155 yen per U.S. dollar and 167 yen per euro. Nissan remains optimistic about the second half of the fiscal year, anticipating improved sales and profitability driven by the introduction of new models and refreshed volume models.
