Honda Motor Unveils 2020-2021 Fiscal Year Results

honda-motor-unveils-2020-2021-fiscal-year-results

Despite some unfavorable factors, such as a decrease in demand due to the COVID-19 pandemic and a shortage of semiconductors in the market, the company’s total operating profit for the fiscal year ended March 31, 2021 was 660.2 billion yen.

This result is largely due to control over sales and general and administrative costs, efforts to reduce costs based on business analysis, and increased profits provided by the annualized difference in loan loss provisions for the financial services business.

Consolidated profit for the year attributable to owners of the parent company increased compared to the same period last year and amounted to 657.4 billion yen, which is due, among other things, to an increase in the share of return on investments accounted for using the equity method.

Despite the impact of higher commodity prices and the annualized difference in loan loss provisions, Honda expects to generate consolidated operating income of ¥ 660 billion for the fiscal year ending March 31, 2022, which is equivalent to fiscal 2021. This can be achieved through increased sales as well as progress in initiatives aimed at strengthening the existing business. Currently, production plans at some of Honda’s manufacturing sites around the world are being adjusted mainly due to a shortage of semiconductors. However, Honda is minimizing the impact of such adjustments on annual performance.

The quarterly dividend for the fourth fiscal quarter is 54 yen per share; The total dividend payable for the fiscal year ended March 31, 2021 will be 110 yen per share, up 28 yen from the previously announced forecast.

The forecast for the total amount of dividends payable for the fiscal year ending March 31, 2022 is 110 yen per share, which is equivalent to dividends for the fiscal year 2021.

In order to ensure a stable and constant distribution of dividends, the frequency of their payment will be increased to twice a year.

Sales revenues were 13,170.5 billion yen, down 11.8% year-on-year. The decline is mainly due to the COVID-19 pandemic. The company’s operating income was 660.2 billion yen, up 4.2% from the previous fiscal year. The growth is driven primarily by control over general and administrative costs and efforts to reduce costs.

Profit before taxes was 914 billion yen, up 15.7% year-on-year. Annual profit attributable to owners of the parent company was 657.4 billion yen, up 44.3% from the previous fiscal year.

Revenue from sales was 3,623.8 billion yen, up 4.8% from the fourth quarter of the last fiscal year. The growth was due to an increase in profit from sales in all areas of the company.

The company’s operating income was 213.2 billion yen, up 218.8 billion yen from the fourth quarter of the last fiscal year. The growth was primarily due to control over general and administrative costs and an increase in profits due to changes in sales volume and model range.

Sales revenue amounted to 529.1 billion yen (up 55.5 billion yen). The growth is associated with the recovery in the level of sales, primarily in Asia.

Operating income was 72.2 billion yen (an increase of 8.7 billion yen). The increase was mainly driven by higher profit margins due to changes in sales volumes and product lines, as well as efforts to reduce costs. Sales revenue amounted to 2,418.4 billion yen (an increase of 79.6 billion yen). The growth was mainly driven by increased sales in Asia, despite declining sales in some regions, including the US and Europe.

Operating income was 37.6 billion yen (an increase of 113.3 billion yen). The growth was primarily due to control over general and administrative costs and an increase in profits due to changes in sales volume and model range. Together with the operating profit from the car sales financial services business, the estimated operating profit for the auto business is 140.4 billion yen.

Despite the impact of higher commodity prices and the difference in loan loss provisions, Honda expects to achieve operating income of ¥ 660 billion for the fiscal year ending March 31, 2022, which is equivalent to fiscal 2021. This can be achieved through increased sales and progress on initiatives to strengthen existing businesses, including optimizing production capacity and improving the efficiency of new developments.