Nissan reports first-half results for fiscal year 2023

Itumeleng Garebatshabe
By Itumeleng Garebatshabe 247 Views 4 Min Read
4 Min Read
  • First-half operating profit more than doubles to 336.7 billion yen
  • Forecast full-year operating profit raised to 620 billion yen

Nissan Motor Co., Ltd. today announced financial results for the six-months ended September 30, 2023, and revised upward its full-year revenue and profit outlook for fiscal 2023.

Fiscal year 2023 first-half financial highlights
Consolidated net revenue increased by 1.40 trillion yen to 6.06 trillion yen, with consolidated operating profit rising 180.1 billion yen to 336.7 billion yen, representing an operating profit margin of 5.6%. Net income1 was 296.2 billion yen.

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Although sales volume in China declined due to intensifying competition and the accelerated transition to new energy vehicles led by local brands, sales in other regions increased significantly year on year. The increased revenues and operating profit were driven primarily by an improved operational performance and higher year-on-year consolidated unit sales.

The following table summarizes Nissan’s financial results for the first half of fiscal year 2023, calculated under the equity accounting method for the group’s China joint venture.

TSE report basis – China JV equity basis

Yen in billionsFY22 first halfFY23 first halfVariance
vs FY22
Net revenue4,662.36,063.3+1,401.1
Operating profit156.6336.7+180.1
Operating margin %3.4%5.6%2.2 percentage points
Ordinary profit196.9412.7+215.7
Net income64.5296.2+231.7

On a management pro forma basis, which includes the proportionate consolidation of results from Nissan’s joint venture operation in China, operating profit was 344.7 billion yen, equivalent to an operating margin of 5.3%.

Fiscal year 2023 second-quarter financial highlights
Consolidated net revenue was 3.1457 trillion yen in the three-month period to September 30, 2023, with consolidated operating profit of 208.1 billion yen, representing an operating profit margin of 6.6%.

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

TSE report basis – China JV equity basis2

Yen in billionsFY22 Q2FY23 Q2Variance
vs FY22
Net revenue2,524.93,145.7+620.8
Operating profit91.7208.1+116.4
Net income17.4190.7+173.3

FY2023 outlook
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, are:

TSE report basis – China JV equity basis

Yen in billionsPrevious FY23
outlook
Revised FY23
outlook
Variance
vs previous outlook
Net revenue12,60013,000+400
Operating profit550.0620.0+70.0
Net income340.0390.0+50.0

The Board of Directors of Nissan decided to pay interim dividend of 5 Yen- per share with record data dated September 30, 2023.

Nissan President and CEO Makoto Uchida said: “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.”

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Itumeleng is the Managing Editor of The Auto Magazine. He is a tech and car enthusiast