Nissan Adjusts FY2024 Forecast Following Tough Q1, Eyes Recovery

Published: Thursday, July 25, 2024, 20:03 [IST]

Nissan Motor Co., Ltd. has announced its financial results for the quarter ending June 30, 2024. The company reported consolidated net revenue of 2.998 trillion yen, an operating profit of 1.0 billion yen, and net income of 28.6 billion yen for the first quarter of the fiscal year.

Despite global sales remaining steady at 787,000 units compared to the same period last year, profits were affected by increased sales incentives and marketing expenses, particularly in the U.S. market. This was due to intense competition and efforts to optimize inventory levels.

The following table summarizes Nissan's financial results for the three months ended June 30, 2024:

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In response to these challenges, Nissan President and CEO Makoto Uchida stated: "Our first quarter results were very challenging. 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 bring VME efficiency with a focus on 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."

Nissan expects improvements in sales and profits in the second half of the fiscal year due to new model launches and refreshed volume models. Consequently, Nissan has revised its full-year outlook as follows: retail sales of 3.65 million units, production of 3.45 million units, net revenue of 14 trillion yen, operating profit of 500 billion yen, and net income of 300 billion yen.

The company has filed this updated fiscal-year outlook with the Tokyo Stock Exchange:

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The assumptions for foreign exchange rates have also been adjusted from an average of JPY 145/USD and JPY 157/EUR to JPY 155/USD and JPY 167/EUR for the full year.

Since fiscal year 2013, Nissan has reported figures using equity method accounting for its joint venture with Dong Feng in China. Although net income reporting remains unchanged under this method, Dong Feng-Nissan’s results are no longer included in revenue and operating profit figures.

Nissan's financial forecast is based on current judgements and estimates but is subject to uncertainty and risk; therefore, actual results may differ from these forecasts.

For more details on Nissan’s financial performance or their products and services focused on sustainable mobility, visit their official website.