Mitsubishi Motors Corp (MMTOF) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you for your participation in our FI-25 financial result meeting while you are busy scheduled. I am Kentaro Matsuoka. I'm executive vice president. Yesterday it was reported that the tariff negotiation was the United States has reached an agreement, and it is hoped that this will mitigate future impacts. However, the automotive tariffs that went into effect in April have already had an impact on our sales activities in the U.S. market. In addition, there is a growing trend to compensate for declining sales in the market, such as the U.S., by expanding sales in other regions, leading to the increased competition in various markets. As a result of these circumstances, we recognize that the sales environment surrounding our company is more challenging than ever before. These business conditions are the main reason for our challenging first quarter result for FI-25, as shown on the slide. Although net sales decreased by only about 3% yoy, operating profit decreased 84% yoy to 5.6 billion yen. Ordinary profit was 4.8 billion yen. And net income was 0.7 billion yen. Retail sales were 194,000 yoy net, similar to the previous year. Please turn to page 4. On this slide, you can see the factors behind the yoy changing in operating profit for first quarter of FI-25. In terms of volume, mix, and selling price, it delivered an operating profit increase of 7.8 billion yen, driven by strong wholesale in ASEAN, Japan, Europe, and other regions, as well as improved selling prices in North America. Sales expenses reduced operating profit by 9 billion yen, mainly due to an increase in in line with intensifying market competition. Procurement cost and shipping cost improved 1.1 billion yen in total, as deterioration in inflation effect was reversed by a reduction in procurement co...