Financial indicators for the third quarter of the fiscal year ending March 31, 2023
On February 10, Mazda announced its financial results for the third quarter of the fiscal year ending March 31, 2023 (April 1, 2022 to December 31, 2022).
Net sales for the third quarter of the fiscal year ending March 2023 were 2,696,255 million yen (up 24.7% year-on-year), operating income was 109,464 million yen (up 71.9% year-on-year), and ordinary income was 135,386 million yen. million yen (up 127.3% year on year), and net income was 103,571 million yen (up 252.0% year on year). Global sales volume was 795,000 units (down 135,000 units year-on-year), and consolidated shipment volume was 737,000 units (up 50,000 units year-on-year).
Breakdown of production volume, consolidated shipment volume, and global sales volume for the third quarter of the fiscal year ending March 31, 2023
At the briefing held on the same day, Mr. Osamu Kawamura, Managing Executive Officer of Mazda, explained the financial results. Both the production volume and the consolidated shipment volume increased from the previous year, but the global sales volume decreased in the 9-month cumulative total due to the impact of the production cut in the first half. However, in the three months of the third quarter, sales recovered mainly in the North American market, and the number of units increased.
In terms of financial indicators, in addition to initiatives such as an increase in consolidated shipments, an improvement in the unit price per vehicle, and a reduction in sales costs, the depreciation of the yen has had the effect of increasing profits, offsetting the impact of soaring raw material prices. . All items were positive compared to the same period of the previous year, resulting in increased sales and profits.
Breakdown of operating profit fluctuation factors compared to the same period of the previous year
Full-year forecast upwardly revised operating income to 150 billion yen and net income to 140 billion yen
Operating income, ordinary income, net income, etc. in the full-year forecast for the fiscal year ending March 31, 2023 have been revised upward from the figures announced in the first half financial results announcement
In the full-year outlook for the fiscal year ending March 31, 2023, due to the impact of the shortage of semiconductor procurement and the shortage of shipping vessels used for export, consolidated shipments will be 13,000 units from the announcement of the first half financial results announced in November 2022. Decreased by 1,087,000 units, and revised down global sales volume by 52,000 units to 1,163,000 units.
On the other hand, in financial indicators, operating income will increase by 10 billion yen to 150 billion yen, ordinary income will increase by 5 billion yen to 175 billion yen, and net income will increase by 10 billion yen to 140 billion yen. Corrected upwards. The company plans to outweigh the impact of the decrease in shipments and soaring raw material prices through progress in improving unit prices.
Due to profit-increasing factors such as “volume/mix” and “exchange rate,” the full-year forecast for the fiscal year ending March 2023 is estimated to increase by 45.8 billion yen year-on-year.
Increased profit factors of “volume/mix” and “foreign exchange rate” will offset the impact of lower profit due to “cost improvement” such as soaring raw material prices
Both shipment and sales volume have been revised downward due to factors such as shortages in semiconductor procurement and shortages of shipping vessels used for export.
Mr. Kawamura summarizes the third quarter of the fiscal year ending March 31, 2023. In the results announced this time, in addition to the effect of the weaker yen, efforts such as unit price improvement and sales cost control have steadily improved “earning power”. As a result, sales and profits increased.
In the midst of restrictions on production at factories, we aimed to deliver as many vehicles as possible to customers, and by promoting initiatives in all areas, including production and sales, In the three months of the quarter, production, sales, and shipments each exceeded the results of the same period of the previous year, and production volume recovered to the scale of 300,000 units. In addition, the full-year forecast has been revised upward, and to achieve this, the company plans to further recover production and promote shipments by utilizing inventory.
In terms of products, production of the CX-90, the second model in the large product group, started in the second half of the third quarter. It will be sold mainly in the North American market, and is positioned as a new flagship model that will drive Mazda’s growth. He said that the Mazda Group will work together to deliver vehicles as quickly as possible to customers who are waiting for delivery of Mazda vehicles, including new products such as the CX-90.
Summary of Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2023
Question-and-answer session
During the Q&A session held in the second half of the financial results briefing, Mr. Katsuhiro Moro, Director and Senior Managing Executive Officer of Mazda, was asked about the results of this year’s financial results, which included an increase in sales and profits and an upward revision to the full-year forecast.
“I think we are making progress largely in line with our expectations. Although the semiconductor procurement situation remains difficult, production in the third quarter exceeded 300,000 units on a quarterly basis for the first time in a year and a half. In response to this, sales volume in the major markets of Japan, the United States, Europe, and Australia recovered rapidly, increasing by 25.5% year-on-year and gaining momentum in the market. We are very positive about the fact that we have come.”
“Especially in the U.S. market, retail sales excluding fleet sales have reached a record high for the third quarter, and we are expecting the CX-90 to enter the market in the future. We are continuing to improve the quality of our sales, but on the other hand, raw material prices will continue to soar, and we expect an impact of around 150 billion yen for the full year.”
“For the fourth quarter, we expect production to be higher than the third quarter, so we would like to set a high target of shipping more than 350,000 units. We believe that it is extremely important to build up a track record in the long run, and with the intention of management to take even one step forward, we have revised our forecast upwards to take on the challenge of achieving operating income of 150 billion yen,” says Mogo. said Mr.
Regarding sales in the Chinese market, which has nearly halved compared to the same period of the previous year, Mr. Hirohiro Aoyama, Mazda Director and Senior Managing Executive Officer, answered.
“It is true that we have continued to make downward revisions to our sales target for this fiscal year in the Chinese market. However, the number of internal combustion engine vehicles has decreased, and the demand for EVs, plug-in hybrids, and range extender models, which are called “new energy vehicles,” has surged to about 70% compared to the previous year. We are in the midst of a rapid shift to electrification.”
“We have no new products (Mazda) this fiscal year, and we are continuing to reinforce our efforts to reorganize our sales channels, which we have been working on since last year. Regarding the restructuring of the network, we will continue to promote the renovation of new-generation stores and increase the number of sales staff on site at each store, mainly over 300 locations over there. In the current fiscal year, we will focus on improving the quality of our network, and expect a reversal from the next fiscal year when new products will be launched. will be introduced in the Chinese market from the next fiscal year onwards, so we would like to leverage these new products to turn around sales.”