Nissan reports April-June progress for fiscal year 2022

Nissan reports April-June progress for fiscal year 2022
826Views
YOKOHAMA, Japan (July 28, 2022) – Nissan Motor Co., Ltd. today announced financial results for the three months ended June 30, 2022.

In the first quarter of the fiscal year, consolidated net revenue was 2.14 trillion yen, consolidated operating profit was 64.9 billion yen, and operating profit margin was 3.0%. Net income[1] in the first quarter was 47.1 billion yen.

During the first quarter, the extremely challenging business environment put pressure on earnings, as production was constrained by the Shanghai lockdown caused by spread of the new coronavirus and semiconductor supply shortages, while external factors such as soaring raw material prices and logistics costs also intensified their impact. However, Nissan managed to offset some of the impact by continuous efforts to improve the quality of sales in each market leading to an increase in revenue per unit of key models. Nissan’s focus on financial discipline and diligent control over fixed costs, along with the tailwind from the weak yen helped to maintain positive revenue and ordinary profit.

First-quarter financial highlights

The following table summarizes Nissan’s financial results for the three months ended June 30, 2022, calculated under the equity accounting method for the group’s China joint venture.

(TSE report basis – China JV equity basis)[2]

Yen in billions FY21 Q1 FY22 Q1 Variance vs FY21
Revenue 2,008.2 2,137.3 +129.1
Operating profit 75.7 64.9 -10.8
Operating margin 3.8% 3.0% -0.8 points
Ordinary profit 90.3 104.0 +13.7
Net income1 114.5 47.1 -67.4

Based on average foreign exchange rates of JPY 130/USD and JPY 138/EUR for FY22 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 98.8 billion yen, equivalent to an operating margin of 4.0%. Net income1 amounted to 47.1 billion yen.  

Commenting on the results, Nissan President and CEO Makoto Uchida said: “In the first quarter, the business environment remained more challenging than expected. We believe our progress in this environment is proof that Nissan’s business foundation has been steadily strengthened through the Nissan NEXT business transformation plan, and that we are changing to a profit structure that is more resilient against external factors. Although the business environment will remain uncertain, in addition to the new Sakura EV, which continues to receive strong orders, we will also launch our global volume model, the X-Trail, with e-POWER and e-4ORCE in Europe following the recent launch in Japan. We will further improve our profit structure while maximizing the effects of these new vehicles.”

[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.