Biznextindia : Despite uncertain global situation and semiconductor issues, Suzuki Motor Corporation has forecasted marginal 2% rise in operating profit to 195 billion Japanese Yen for FY 2022 ( April 2022 to March 2023) from 191.5 billion Yen in 2021 (April 2021-March 2022). The company has plans annual dividends of 91 yen per share, the same amount as in FY2021.
“Although concerns over the procurement of parts including semiconductors and the future of global situation are uncertain, the Company outlined full-year forecast for FY2022, which includes net sales to be ¥3,900 billion, mainly owing to an increase in sales units, improvement in unit prices, and the depreciation of yen. Operating profit is expected to be ¥195 billion (Operating margin 5.0%), reflecting the impact of increase in raw material prices and increase in costs associated with CASE initiatives such as EV development. The Company plans annual dividends of 91 yen per share, the same amount as in FY2021”Suzuki Motor Corporation said.
From April 2021 to March 2022, net sales increased by ¥390.2 billion (12.3%) to ¥3,568.4 billion compared to the previous year, when the business performance declined due to the COVID-19 pandemic. Operating profit decreased by ¥2.9 billion (1.5%) to ¥191.5 billion year-on-year (YoY), mainly owing to increase in raw material prices. Ordinary profit increased by ¥14.6 billion (5.9%) to ¥262.9 billion YoY, mainly owing to improvement of financial revenue. Profit attributable to owners of parent increased by ¥13.9 billion (9.5%) to ¥160.3 billion YoY. The Company schedules the annual dividends of ¥91 per share (an increase of 1 yen YoY).
Net Sales slips in Jan-March quarter
In January-March period, net sales decreased by ¥8.6 billion (0.9%) to ¥994.1 billion YoY, owing to decrease in sales units in countries including Japan and India, owing to production decrease due to parts shortage including semiconductors. Operating profit decreased by ¥10.8 billion (19.5%) to ¥44.8 billion YoY, mainly owing to increase in raw material prices such as steel. Ordinary profit decreased by ¥14.4 billion (19.5%) to ¥59.0 billion YoY, and profit attributable to owners of parent decreased by ¥8.7 billion (26.0%) to ¥24.5 billion YoY.
Amid the continuing impact of production decrease, net sales decreased by ¥21.4 billion (2.3%) to ¥893.4 billion YoY, and operating profit decreased by ¥8.3 billion (18.2%) to ¥37.1 billion YoY, mainly owing to increase in raw material prices.