Nissan Motor has reported its impressive second-quarter results, showcasing its continued growth and success in the automotive industry. Here are the key details you need to know about their performance:
Net Profit Soars
Nissan’s net profit for the three months ending on September 30 surged to an astounding 190.735 billion yen ($1.26 billion), compared to 17.36 billion yen from the same period last year. This remarkable achievement surpassed analysts’ expectations of 90.925 billion yen according to a poll conducted by data provider Quick.
The company also experienced substantial revenue growth in the second quarter, with a 25% rise from the previous year, reaching 3.146 trillion yen. This positive outcome exceeded the estimated revenue of 3.035 trillion yen projected in the Quick poll.
Key Factors to Observe
Nissan has raised its earnings forecasts for the fiscal year ending in March 2024. The company attributes this boost to global sales growth in all regions except China, as well as the impact of a weaker yen. The revised projections indicate that net profit is expected to increase by an impressive 76% to reach 390.00 billion yen, while revenue is set to rise by 23% to reach 13.000 trillion yen.
Increased Operating-Profit Margin
The second-quarter operating-profit margin showed a significant improvement, rising to 6.6% from 3.6% compared to the previous year. This positive development can be attributed to an increase in sales volume and higher selling prices, highlighting Nissan’s successful strategies in the market.
Expansion Plans in China
Recognizing the importance of the Chinese market, Nissan plans to release four new models, including full electric vehicles and its first-ever plug-in hybrid vehicle, by 2026. This strategic move aims to strengthen the company’s operations in China, which experienced a dip in sales during the second quarter due to intensified competition and a shift in consumer preferences away from traditional gasoline-powered vehicles.