By Kosaku Narioka
Nissan Motor has announced its first-quarter results for the period ending in June, showing impressive growth and exceeding analysts’ expectations.
Net Profit Doubles
Nissan’s net profit more than doubled to 105.475 billion yen ($748.5 million) compared to 47.11 billion yen the previous year. This marked increase surpassed the estimated net profit of 79.23 billion yen.
The company also experienced a significant revenue increase in the first quarter, with a 37% rise from the previous year, reaching 2.918 trillion yen. This figure beat the estimated revenue of 2.752 trillion yen.
Here are some key highlights from Nissan’s first-quarter report:
Operating profit in North America saw a substantial increase of 72% from the previous year, reaching 132.05 billion yen. The success in this region was driven by a sales growth of 33% to 328,000 vehicles, as well as a 6% increase in revenue per vehicle. Nissan expects sales in North America to rise even further to 1.37 million vehicles by March 2024.
Nissan’s operating-profit margin improved from 3.0% to 4.4% during the first quarter, primarily due to price increases and effective cost controls.
In contrast, sales in China experienced a decline of 37% from the previous year, reaching 162,000 vehicles. Increased competition and the continued shift towards electric vehicles contributed to this decrease. However, Nissan aims to strengthen its operations in China by introducing new electric vehicle models.
Despite the challenges in China, Nissan has raised its revenue and net-profit forecasts for the fiscal year. While sales forecasts have been adjusted from 4.0 million units to 3.70 million units, the company expects a 19% increase in revenue to 12.600 trillion yen and a 53% rise in net profit to 340.00 billion yen.
Nissan’s impressive first-quarter results demonstrate its ability to overcome challenges and continue its growth trajectory.