Mitsubishi Motors Corp (MMTOF) Q4 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Matsuoka-san, please. Please turn to page 3. Thank you for your participation in our FY24 full-year results meeting despite your busy schedule. In FY2024, we faced a challenging sales environment due to the delayed recovery in total of automotive demand in Thailand and Indonesia, as well as intensified competition resulting from the easing of global vehicle supply constraints. Despite these conditions, during the first half of the year, we were able to steadily increase our earnings, supported by favorable FX rates, even when fixed cost flows due to inflation. However, in the second half, the standard appreciation of tie bars, our cost currency, turned the exchange rate impact negative. Despite the challenging environment, we successfully translated increased unit sales driven by new models into solid earnings. In general, we implemented three cost and expenses reductions. As a result, we exceeded the full-year operating profit forecast that had been revised in Q3. Net sales remained on par with the previous year at 2,788.2 billion yen. Operating profit was 138.8 billion yen with the operating margin of 5%. Ordinary profit was 98.6 billion yen, and net income was 41 billion yen. Although retail sales volume fell slightly short of our revised forecast, it increased by 27,000 units year-over-year to 842,000 units. As initially forecasted, we will increase the annual dividend by 5 yen from the previous fiscal year to 15 yen per share. Please turn to page 4. In this slide, you can see the factors behind year-over-year changes in OP for FY2024. Volume mix and price and others contributed to a positive impact of 3.7 billion yen year-over-year. Within this, Volume mix had a negative impact of 9.3 billion yen, mainly due to a decline in wholesale volume in the Middle East, A...