1Q sales increased 37% year-on-year to 2,917.7 billion yen
・Operating income increased 98% year-on-year to 128.6 billion yen
・Net income *1 increased 124% year-on-year to 105.5 billion yen
Nissan Motor Co., Ltd. announced its financial results for the first quarter of fiscal 2023 on the 26th.
In the first quarter of fiscal 2023, consolidated net sales were 2,917.7 billion yen, consolidated operating income was 128.6 billion yen, operating income margin was 4.4%, and net income was 105.5 billion yen . Sales volume in China decreased due to the impact of COVID-19 and intensifying sales competition, but sales volume in other regions increased significantly year-on-year. In addition to setting appropriate prices and implementing thorough financial discipline, the depreciation of the yen also provided a tailwind, leading to significant increases in sales and profits.
FY2023 Q1 3-Month Financial Results
Financial results for the first quarter of fiscal year 2023 applying the equity method to the joint venture in China are as follows.
| (Notified on the Tokyo Stock Exchange – Equity method applied to joint venture in China) Note 2 | Q1 FY2022 | Q1 FY2023 | Change (vs. previous year) |
| amount of sales | ¥2,137.3 billion | ¥2,917.7 billion | +780.4 billion yen |
| Operating income | 64.9 billion yen | 128.6 billion yen | +63.7 billion yen |
| Operating Income Margin % | 3.0% | 4.4% | +1.4 points |
| Ordinary income | 104 billion yen | 166.6 billion yen | +62.6 billion yen |
| Net income Note 1 | 47.1 billion yen | 105.5 billion yen | +58.4 billion yen |
The average rates for the first quarter of fiscal 2023 are 137 yen to the US dollar and 150 yen to the euro.
Based on accounting standards that proportionately consolidate the Chinese joint venture, consolidated operating income for the first quarter of fiscal 2023 was 130.5 billion yen, operating margin was 4.2%, and net income*1 was 105.5 billion yen .
Outlook for fiscal 2023
Due to the decline in sales in China, the sales volume for fiscal 2023 is expected to be 3.7 million units, down 7.5% from the previous forecast. However, despite the decrease in unit sales, which has a negative impact on profits, we will revise our earnings forecast for the current fiscal year as follows due to thorough financial discipline and a review of exchange rates. Consolidated net sales are expected to be 12.6 trillion yen, consolidated operating income is expected to be 550 billion yen, an improvement of 30 billion yen from the initial forecast, and net income is expected to be 340 billion yen, an improvement of 25 billion yen from the previous forecast . .
The full-year forecast for fiscal 2023, which applies the equity method to a joint venture in China, has been revised as follows and has been submitted to the Tokyo Stock Exchange.
| (Notified on the Tokyo Stock Exchange – Equity method applied to joint venture in China) Note 2 | Previous outlook | Outlook this time | Change (vs. previous forecast) |
| amount of sales | ¥12.4 trillion | ¥12.6 trillion | +200 billion yen |
| Operating income | 520 billion yen | 550 billion yen | +30 billion yen |
| Net income Note 1 | 315 billion yen | 340 billion yen | +25 billion yen |
Makoto Uchida, President and CEO, said, “In the first quarter, we made up for the slump in the Chinese market and achieved a significant year-on-year improvement in performance. Production and sales in Japan and North America in particular recovered significantly. We would like to maintain this momentum in the second quarter and beyond, expanding our product lineup by adding e-POWER to the X-TRAIL in China, where sales are declining, and introducing a plug-in hybrid vehicle under the Venucia brand. In China, where the business environment is undergoing major changes and competition is becoming more and more intense, it is difficult to rebuild the business overnight, but we are accelerating the formulation and execution of medium- to long-term strategies to steadily improve earnings. I will continue.”
