Mitsubishi Motors Corp (MMTOF) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you for your participation in our first half of FY25 results meeting. While yours is busy today, I am Kendora Matsuoka, CFO of the company. While some uncertainty regarding U.S. tariff policies has dissipated and there are signs of easing environmental regulations, price competition may be driven by Chinese manufacturers has intensified further. Geopolitical and macroeconomic uncertainties such as supply concerns due to U.S.-China tensions and economic stagnation remain high. Under these circumstances, the sales environment surrounding us continues to be severe, compounded by rising costs and a delayed recovery in demand. Against this industry backdrop, a result for the first half, FY25, as shown in this slide, showed a decrease in both sales in profit on a year-on-year basis. Net sales were 1 trillion 261.3 billion yen, decreasing 4% YOY. Operating profit decreased 81% YOY to 17.3 billion yen. And the OP margin decreased 5.5 points from 6.9% in the same period last year to 1.4%. Ordinary profit was 15.8 billion yen. Net loss was 9.2 billion yen primarily due to temporary factors such as 7 billion yen evaluation loss in U.S. environmental credit following changes in U.S. environmental regulations and the 6 billion yen in losses associated with the withdrawal from a joint venture engine plant in China. Retail sales decreased 6% YOY to 384,000 units. Please turn to page four. In this slide, you can see the factors behind the YOY changes in operating profit for first half of Y25. In terms of volume mix, the impact of decrease of wholesale volume due to the discontinuation of some models in North America and other regions was offset by price in others, resulting in an overall increase of 1 billion yen in operating profit. Sales expenses decreased operating profit b...