Nissan Motor Co., Ltd. announced financial results for the six-months ended September 30, 2022 and revised upward its full-year revenue and profit outlook for fiscal 2022.
Fiscal year 2022 first-half financial highlights
Consolidated net revenue increased by 715.3 billion yen to 4.66 trillion yen, with consolidated operating profit rising 17.5 billion yen to 156.6 billion yen, representing an operating profit margin of 3.4%. Net income1 was 64.5 billion yen.
The increased revenue and operating profit were achieved despite a severe business environment in the first half of the fiscal year, with raw material prices rising sharply and sales volume falling below the previous year’s level due to semiconductor supply shortages and the impact of COVID-related lockdowns in Shanghai, China.
Through steady implementation of the Nissan NEXT transformation plan, the company improved net revenue per unit by continuing to improve the quality of sales in each market and reducing selling expenses. The improved performance over the previous fiscal year also reflected recent exchange rates and a weaker than expected yen.
The following table summarizes Nissan’s financial results for the first half of fiscal year 2022, calculated under the equity accounting method for the group’s China joint venture.
TSE report basis – China JV equity basis2
| Yen in billions | FY21 first half | FY22 first half | Variance
vs FY21 |
| Net revenue | 3,947.0 | 4,662.3 | +715.3 |
| Operating profit | 139.1 | 156.6 | +17.5 |
| Operating margin % | 3.5% | 3.4% | -0.1 percentage points |
| Ordinary profit | 184.5 | 196.9 | +12.4 |
| Net income1 | 168.6 | 64.5 | -104.1 |
Based on average foreign exchange rates of JPY 134 /USD and JPY 139 /EUR for FY22 H1
On a management pro forma basis, which includes the proportionate consolidation of
results from Nissan’s joint venture operation in China, operating profit was 212.6 billion yen, equivalent to anoperating margin of 4.0%. Net income1 was 64.5 billion yen.
Fiscal year 2022 second-quarter financial highlights
Consolidated net revenue was 2.52 trillion yen in the three-month period to September 30, 2022, with consolidated operating profit rising 44.5% to 91.7 billion yen, representing an operating profit margin of 3.6%. Nissan achieved the stronger second quarter results despite challenging business conditions. In addition, net income1 was
17.4 billion yen, down from the previous year due to a one-time loss of 24.1 billion yen recorded in the second quarter associated with the company’s withdrawal from the Russian market, and a decrease in equity in earnings of affiliates. In the second quarter, free cash flow from the automobile business was a positive 206.6 billion yen.
The following table summarizes Nissan’s financial results for the three months ended September 30, 2022, calculated under the equity accounting method for the group’s China joint venture.
TSE report basis – China JV equity basis2
| Yen in billions | FY21 Q2 | FY22 Q2 | Variancevs FY21 |
| Net revenue | 1,938.8 | 2,524.9 | +586.1 |
| Operating profit | 63.4 | 91.7 | +28.3 |
| Net income1 | 54.1 | 17.4 | -36.7 |
Based on average foreign exchange rates of JPY 138 /USD and JPY 139 /EUR for FY22 Q2
FY2022 outlook
For the 12-month period to March 31, 2023, Nissan expects sales volume to decrease by 7.5% over the previous forecast to 3.7 million units. In the second half of the fiscal year, the company expects to face continued shortages ofsemiconductor supply and increasing raw material prices. Despite these challenges, Nissan will continue to introduce new models and improve the quality of sales. In addition, due to recent fluctuations in foreign exchange rates and the significant weakening of the yen, Nissan has revised its exchange rate assumptions accordingly.
Taking these factors into consideration, Nissan has revised its full year forecast for fiscal 2022. The revised forecast reflects a 900.0 billion yen upward adjustment in net revenue and a 110.0 billion yen increase in operating profitcompared with the previous forecast.
Net income1 attributable to owners of the parent has been revised upward by 5 billion yen to 155 billion yen from the previously announced forecast. This revision factors in an extraordinary loss of approximately 100 billion yenexpected to be incurred in connection with the withdrawal from the Russian market.
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, 2023, are
TSE report basis – China JV equity basis2
| Yen in billions | Previous FY22outlook | Revised FY22outlook | Variance
vs previous outlook |
| Net revenue | 10,000.0 | 10,900.0 | +900.0 |
| Operating profit | 250.0 | 360.0 | +110.0 |
| Net income1 | 150.0 | 155.0 | +5.0 |
Based on average foreign exchange rates of JPY 135 /USD and JPY 137 /EUR for the revised FY22 outlook
Nissan CEO Makoto Uchida said: “Our strong first half performance reflects our steadily improving profit structureand strong business foundations, as well as the exchange-rate impact of the historically weak yen. We achieved thisencouraging result even though the business environment became more challenging due to the ongoing shortage of
semiconductors and soaring raw material prices.
“In this environment, all Nissan employees worked together to maintain financial
discipline and improve quality of sales. In addition, our newly introduced models have been very well received by customers in their respective regions. Although we expect the business environment to remain challenging in thesecond half, we aim to achieve our upwardly revised forecast by continuing to implement the Nissan NEXT business transformation plan.”
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