Toyota: net profit doubled over one year

Toyota: net profit doubled over one year
Toyota: net profit doubled over one year

The Japanese giant Toyota published on Tuesday an annual net profit doubled over one year. The automobile manufacturer, the world number one in the sector, has benefited in particular from the surge in its sales of hybrid vehicles, but forecasts a sharp decline in 2024/25.

Net profit for the past financial year, ended at the end of March, amounted to 4,944.9 billion yen (28.67 billion francs), a new record. But it is expected to fall 27.8% in 2024/25, to 3.70 billion yen, with Toyota planning big investments in new technologies and human capital, according to a statement.

The group also expects a pronounced decline in its annual operating profit (-19.7%), while it also almost doubled in 2023/24 to around 5,353 billion yen. Because Toyota plans to invest 2000 billion during its new financial year to support its future growth, in new engines (electric, hydrogen) and digital technology (software, artificial intelligence), as well as in human capital, including for its suppliers and dealers with whom he cultivates very close ties.

Its annual turnover should increase slightly by 2% to 46,000 billion yen. But this would be a sharp slowdown compared to the past financial year, when its sales jumped 21.4% to 45,000 billion yen.

Expected decline

It even expects a slight decline in its global sales in volume (-1.3% over one year to 10.95 million units, partly due to the expected decline in sales in Japan of its subsidiary Daihatsu, affected in recent months by a scandal of irregularities in the certifications of its vehicles on the Japanese market In 2023/24, the group (Toyota, Lexus, Daihatsu and Hino brands) sold more than 11 million vehicles (+5% on. one year), a new record.

Driven by its hybrid models, a segment where Toyota excels, its sales were particularly dynamic in North America, Europe and Japan, despite the Daihatsu affair. In China, where all foreign car manufacturers are struggling to remain competitive against local competitors that have become formidable and electric champions like BYD, Toyota resisted in 2023/24 by achieving a small increase in its volume sales (+1, 4%).

To satisfy its shareholders, Toyota also announced on Tuesday a giant plan to buy back its own shares for a maximum of 1,000 billion yen in 2024/25 (6 billion euros at the current price) and a 25% increase in its dividends for the last financial year, at 75 yen per share. Toyota shares ended Tuesday down 0.55% on the Tokyo Stock Exchange.

/ATS

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