Mitsubishi Motors (7211) Q1 2025 earnings summary

Executive summary

• Q1 FY2024 saw net sales of ¥627.5 billion, down 1% year-over-year, with operating profit falling 21% to ¥35.5 billion and net income dropping 38% to ¥29.5 billion, amid intensified competition and sluggish demand in key markets.

• Retail sales volume was 194,000 units, nearly flat year-over-year, with regional shifts in performance.

• Sales and profits declined year-on-year, impacted by competition, inflation, and higher quality-related costs.

• Full-year FY2024 forecast projects net sales of ¥2,880 billion (+3%), operating profit of ¥190 billion (–0.5%), and net income of ¥144 billion (–6.9%), with annual dividend forecast raised to ¥15 per share.

Financial highlights

• Net sales were ¥627.5 billion, down 1.3% year-over-year.

• Operating profit dropped 21% year-over-year to ¥35.5 billion; OPM fell to 5.7%.

• Ordinary profit decreased 31% year-over-year to ¥42.4 billion; net income was ¥29.5 billion, down 38%.

• Cash & deposits fell to ¥562 billion from ¥674.2 billion at FY2023 year-end; interest-bearing debt reduced by ¥80.1 billion.

• Equity ratio improved to 44.2% from 41.2% at the end of FY2023.

Outlook and guidance

• Full-year FY2024 guidance maintained: net sales ¥2,880 billion (+3.2%), operating profit ¥190 billion (–0.5%), net income ¥144 billion (–6.9%), EPS ¥96.85.

• FY2024 sales volume forecast is 895,000 units (+10% year-over-year), with ASEAN and North America leading growth.

• Dividend per share forecast raised to ¥15 from ¥10 in FY2023.

• Capital expenditure, R&D, and depreciation are all expected to increase year-over-year.

• Company aims to achieve forecasts through concerted efforts and continued rollout of new models.