Honda Motor Co., Ltd. (HMC:NYSE) announced its Consolidated Financial Summary for the Fiscal Nine Months Ended December 31, 2022 and Forecasts for the Fiscal Year Ending March 31, 2023
Honda reported a consolidated operating profit of 733.9 billion yen for the nine months ending December 31, 2022, an increase of 62.2 billion yen year-on-year, despite challenges from semiconductor shortages and rising production costs due to inflation. The company's sales revenue rose to 12,523.4 billion yen, up 17.3% compared to the previous year, attributed to increased motorcycle sales and favorable currency effects. Honda maintained its FY23 operating profit forecast of 870.0 billion yen and announced a share buyback worth 70.0 billion yen to enhance capital efficiency. Profit attributable to owners reached 583.1 billion yen, reflecting a slight increase of 0.2%.
- Consolidated operating profit increased to 733.9 billion yen, up 9.3% year-on-year.
- Sales revenue rose to 12,523.4 billion yen, a 17.3% increase attributed to higher motorcycle sales.
- Maintained FY23 operating profit forecast at 870.0 billion yen.
- Announced a share buyback of 70.0 billion yen to improve capital structure.
- Automobile unit sales decreased by 0.260 million units due to semiconductor supply issues.
- Operating profit from the automobile sector fell by 40.1% to 112.9 billion yen, impacted by rising raw material costs.
- Financial services operating profit decreased by 14.6%.
- Despite some unfavorable factors such as 1) a decrease in automobile production and unit sales due to the semiconductor supply shortage and the impact of COVID-19 in
China , and 2) an increase in production costs due to an increase in the cost of raw materials and the impact of inflation, consolidated operating profit for the fiscal nine months amounted to733.9 billion yen , a year-on-year increase by62.2 billion yen . This was due primarily to pricing that reflects increased product value, an increase in motorcycle unit sales and favorable currency effects. - Consolidated profit for the fiscal nine months attributable to owners of the parent amounted to
583.1 billion yen , a year-on-year increase by1.0 billion yen - Despite a decrease in automobile unit sales due to the semiconductor supply shortage and the impact of COVID-19 in
China , and the upward pressure on costs due primarily to the impact of inflation,Honda managed to maintain the previously announced forecast for consolidated operating profit for the current fiscal year endingMarch 31, 2023 (FY23),870.0 billion yen , reflecting pricing that reflects increased product value, an increase in motorcycle unit sales mostly inAsia and the company-wide efforts to further improve profitability. Honda will acquire its own shares, with the maximum acquisition amount of70.0 billion yen , with the purposes including improving efficiency of its capital structure and implementing a flexible capital strategy.
I. Consolidated financial summary and business-by-business results for the fiscal nine months ended
- Sales revenue:
12,523.4 billion yen (a year-on-year increase of17.3% )
Increase due primarily to higher motorcycle sales and favorable currency effects. - Operating profit:
733.9 billion yen (a year-on-year increase of9.3% ) - Profit for the period attributable to owners of the parent:
583.1 billion yen (a year-on-year increase of0.2% ).
1) Motorcycle business
Sales revenue:
Increase due primarily to higher sales in
Operating profit:
Increase due primarily to strong sales, positive effects of pricing that reflects increased product value and favorable currency effects.
2) Automobile business
Sales revenue:
Increase due primarily to favorable currency effects.
Operating profit:
Decrease due primarily to higher raw material costs, impact of inflation and a decrease in unit sales.
Combined with operating profit from financial services business related to automobile sales, the estimated operating profit for automobile business is
3) Financial Services business
Operating profit:
4) Power Product and Other businesses
Operating profit :
Aircraft/aircraft engine business, which is included in "Other businesses," accounted for an operating loss of
II. Forecasts for the fiscal year ending
- Sales revenue:
17,250.0 billion yen
(downward revision of the previously announced forecast by150.0 billion yen ) - Operating profit:
870.0 billion yen
(no change from the previously announced forecast) - Profit for the fiscal year attributable to owners of the parent:
725.0 billion yen
(no change from the previously announced forecast)
Consolidated Financial Results for the Fiscal Nine Months Ended
Fiscal nine months ended (9 months period) | Fiscal nine months ended Dec. 31, 2022 (9 months period) | Difference | ||
Unit Sales*1 (million units) | Motorcycles | 12.775 | 14.285 | +1.510 |
Automobiles*3 | 3.000 | 2.740 | -0.260 | |
Power Products | 4.500 | 4.121 | -0.379 | |
Consolidated Unit Sales*2 (million units) | Motorcycles | 7.964 | 9.570 | +1.606 |
Automobiles*3 | 1.792 | 1.712 | -0.080 | |
Power Products | 4.500 | 4.121 | -0.379 | |
Financial Results (billion yen) | Sales revenue | 10,677.0 | 12,523.4 | +1,846.4 |
Operating profit | 671.6 | 733.9 | +62.2 | |
Share of profit of investments accounted for using the equity method | 157.0 | 148.8 | -8.1 | |
Profit before income taxes | 845.2 | 859.3 | +14.1 | |
Profit for the period attributable to owners of the parent | 582.1 | 583.1 | +1.0 | |
Average Rate (yen) | USD= | 111 | 137 | +26*4 |
Forecasts for the Fiscal Year Ending
FY22 results | Previous FY23 forecasts （2022/11/9） | Revised FY23 forecasts (2023/2/10) | Difference compared to FY22 results | Difference compared | ||
Unit Sales*1 (million units) | Motorcycles | 17.027 | 18.430 | 18.730 | +1.703 | +0.300 |
Automobiles*3 | 4.074 | 4.100 | 3.850 | -0.224 | -0.250 | |
Power Products | 6.200 | 5.665 | 5.580 | -0.620 | -0.085 | |
Consolidated Unit Sales*2 (million units) | Motorcycles | 10.721 | 12.020 | 12.110 | +1.389 | +0.090 |
Automobiles*3 | 2.424 | 2.465 | 2.430 | +0.006 | -0.035 | |
Power Products | 6.200 | 5.665 | 5.580 | -0.620 | -0.085 | |
Financial Results (billion yen) | Sales revenue | 14,552.6 | 17,400.0 | 17,250.0 | +2,697.3 | -150.0 |
Operating profit | 871.2 | 870.0 | 870.0 | -1.2 | ― | |
Share of profit of investments accounted for using the equity method | 202.5 | 225.0 | 215.0 | +12.4 | -10.0 | |
Profit before income taxes | 1,070.1 | 1,080.0 | 1,080.0 | +9.8 | ― | |
Profit for the year attributable to owners of the parent | 707.0 | 725.0 | 725.0 | +17.9 | ― | |
Annual dividend per share (yen) | 120 | 120 | 120 | ― | ― | |
Average Rate (yen) | USD= | 112 | 135 | 135 | +23*4 | +0*4 |
Supplemental data
Consolidated Financial Results for the Fiscal 3rd Quarter Ended
3rd quarter ended (3 months period) | 3rd quarter ended (3 months period) | Difference | ||
Unit Sales*1 (million units) | Motorcycles | 4.602 | 5.083 | +0.481 |
Automobiles*3 | 1.085 | 0.955 | -0.130 | |
Power Products | 1.270 | 1.186 | -0.084 | |
Consolidated Unit Sales*2 (million units) | Motorcycles | 2.877 | 3.227 | +0.350 |
Automobiles*3 | 0.610 | 0.619 | +0.009 | |
Power Products | 1.270 | 1.186 | -0.084 | |
Financial Results (billion yen) | Sales revenue | 3,688.7 | 4,438.1 | +749.4 |
Operating profit | 229.4 | 280.4 | +51.0 | |
Share of profit of investments accounted for using the equity method | 49.7 | 65.9 | +16.1 | |
Profit before income taxes | 284.8 | 343.5 | +58.7 | |
Profit for the period attributable to owners of the parent | 192.9 | 244.6 | +51.6 | |
Average Rate (yen) | USD= | 114 | 142 | +28*4 |
*1 | |
*2 | Consolidated Unit Sales is the total unit sales of completed products (motorcycles, ATVs, Side-by-Sides, automobiles, power products) corresponding to consolidated sales revenue, which consists of unit sales of completed products of |
*3 | Certain sales of automobiles that are financed with residual value type auto loans and others by our Japanese finance subsidiaries and provided through our consolidated subsidiaries are accounted for as operating leases in conformity with IFRS and are not included in consolidated sales revenue to the external customers in our Automobile business. Accordingly, they are not included in Consolidated Unit Sales, but are included in |
*4 | +: weak yen / - : strong yen |
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