Nissan reports April-December results for fiscal year 2021

Nissan Motor Co., Ltd. announced financial results for the April-December period of fiscal year 2021 and an upwardly revised outlook for fiscal year 2021.

April-December financial highlights

For the first nine months of the fiscal year, consolidated net revenue was 6.15 trillion yen, consolidated operating profitwas 191.3 billion yen, and the operating profit margin was 3.1%. Net income¹ for the nine months was 201.3 billion yen.

Although the supply shortage of semiconductors continued to have an impact, favorable market conditions in the Unites States coupled with continued improvement in the quality of sales in each market resulted in a significant increase in net revenue per unit of major, new models. Profit significantly improved year on year thanks to financial discipline and strict control of fixed costs.

TSE report basis – China JV equity basis²

Based on average foreign exchange rates of 111 JPY/USD and 131 JPY/EUR for FY21 3Q

On a management pro forma basis, which includes the proportionate consolidation of results from Nissan’s joint venture operation in China, operating profit was 284.5-billion-yen, equivalent to an operating margin of 4.0%. Net profit¹ was 201.3 billion yen.

Third-quarter financial highlights

In the third quarter of fiscal year 2021, consolidated net revenue was 2.21 trillion yen, consolidated operating profit was 52.2 billion yen, and the operating profit margin　was 2.4%. Net income¹ in the third quarter was 32.7 billion yen. Compared with the same period last year, Nissan has continued to improve its performance, with significant improvements in both consolidated operating profit and net income.

The following table summarizes Nissan’s financial results for the three months ended Dec. 31, 2021, calculated under the equity accounting method for the group’s China joint venture.

TSE report basis – China JV equity basis²

Based on average foreign exchange rates of 114 JPY/USD and 130 JPY/EUR for FY21 Q3

FY2021 outlook

Although the sales volume forecast for fiscal 2021 remains unchanged at 3.8 million units, the severe semiconductor shortage and the increase of COVID-19 infections due to the spread of the Omicron strain are affecting plant operations. Despite these challenges, Nissan has revised upward its full-year outlook due to further improvement in performance due to the enhancement of quality of sales and cost optimization, ongoing depreciation of the yen and a review of the impact of rising raw material prices.

Nissan is forecasting net revenue of 8.71 trillion yen. The company foresees an operating profit of 210 billion yen, an increase of 30 billion over the previous outlook, reflecting the results of the first nine months. A net profit¹ of 205 billion yen is expected, an increase of 25 billion yen over the previous outlook.

The company has filed the following fiscal year outlook to 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, 2022, are:

TSE report basis – China JV equity basis²

Commenting on the results, Nissan CEO Makoto Uchida said: “In fiscal year 2021, we have steadily improved our business performance through the first nine months by launching new vehicles, improving the quality of our sales, and continuing our efforts to ensure financial discipline. Although we expect the market environment to remain uncertain in the fourth quarter, we will continue to enhance our initiatives to achieve our revised full-year outlook and a 2% operating margin³ in this important year of the Nissan NEXT transformation plan. By building on this momentum and promoting Nissan NEXT globally, we aim to achieve the plan’s target of a 5% operating margin³ in fiscal year 2023.”