Nissan Motor Co., Ltd. today announced financial results for the six-months ended September 30, 2024, and revised its full year financial outlook for fiscal year 2024.
Fiscal year 2024 first-half financial results
Consolidated net revenue decreased by 79.1 billion yen to 5.98 trillion yen, with consolidated operating profit decreasing 303.8 billion yen to 32.9 billion yen, representing an operating profit margin of 0.5%. Net income1 was 19.2 billion yen.
Global sales volumes decreased year-on-year to 1.6 million units. Profitability was affected by higher selling expenses and inventory optimization efforts, particularly in the US, along with rising monozukuri costs.
The following table summarizes Nissan’s financial results for the first half of fiscal year 2024, calculated under the equity accounting method for the group’s China joint venture.
TSE report basis – China JV equity basis2
| Yen in billions | FY23 first half | FY24 first half | Variance vs FY23 |
| Net revenue | 6,063.3 | 5,984.2 | -79.1 |
| Operating profit | 336.7 | 32.9 | -303.8 |
| Operating margin % | 5.6% | 0.5% | -5.1 points |
| Ordinary profit | 412.7 | 116.1 | -296.6 |
| Net income1 | 296.2 | 19.2 | -277.0 |
Based on average foreign exchange rates of JPY 153/USD and JPY 166/EUR for FY24 H1
Fiscal year 2024 second-quarter financial results
Consolidated net revenue was 2.99 trillion yen in the three-month period to September 30, 2024, with consolidated operating profit of 31.9 billion yen and net income of negative 9.3 billion yen. The following table summarizes the results for the second quarter of fiscal year 2024, calculated under the equity accounting method for the group’s China joint venture.
TSE report basis – China JV equity basis2
| Yen in billions | FY23 Q2 | FY24 Q2 | Variance vs FY23 |
| Net revenue | 3,145.7 | 2,985.8 | -159.9 |
| Operating profit | 208.1 | 31.9 | -176.2 |
| Net income1 | 190.7 | -9.3 | -200.1 |
Based on average foreign exchange rates of JPY 150/USD and JPY 164/EUR for FY24 Q2
FY2024 outlook
Nissan has revised downward its full year outlook for fiscal year 2024. The updated projections anticipate net revenue to be 12,700 billion yen. Operating profit is expected to reach 150 billion yen. Net income is to be determined (TBD*) due to ongoing assessment of costs necessary for the planned turnaround efforts.
The company has filed the following fiscal-year outlook with the Tokyo Stock Exchange. Calculated under the equity accounting method for Nissan’s joint venture in China, the forecasts for the fiscal year ending March 31, 2025, are:
TSE report basis – China JV equity basis2
| Yen in billions | Previous FY24 outlook |
Revised FY24 outlook |
Variance vs previous outlook |
| Net revenue | 14,000.0 | 12,700.0 | -1,300.0 |
| Operating profit | 500.0 | 150.0 | -350.0 |
| Net income1 | 300.0 | TBD* | – |
The average foreign exchange rates for the revised fiscal year 2024 outlook have been revised to the premise of JPY 149/USD and JPY 164/EUR from JPY 155/USD and JPY 167/EUR for previous outlook.
Due to the revised financial forecast for the fiscal year, the board of directors elected not to pay an interim dividend. The previous year-end dividend outlook has been removed and will be determined in conjunction with the recovery of the business. Nissan will continue to prioritize financial discipline as an essential component of the Arc business plan.
Turnaround actions
Facing a severe situation, Nissan is taking urgent measures to turnaround its performance and create a leaner, more resilient business capable of swiftly adapting to changes in the market.
To achieve healthy growth in the future, the company will implement a structure to secure sustainable profitability and cash generation, even with a projected annual sales of 3.5 million units by fiscal year 2026. While ensuring diligent execution of the Arc business plan, Nissan seeks to enhance investment efficiencies and product competitiveness through strategic partnerships with Renault Group, Mitsubishi Motors Corporation (MMC), and Honda Motor Co., Ltd. It’s turnaround actions include:
Stabilize and right-size business
Nissan aims to reduce fixed costs by 300 billion yen (compared to FY2024) and variable costs by 100 billion yen (compared to FY2024) while maintaining a healthy free cash flow.
To achieve this, Nissan will cut global production capacity by 20% and reduce its global workforce by 9,000. The company is implementing various measures to lower selling, general, and administrative expenses, decrease the cost of goods sold, rationalize its asset portfolio, and prioritize capital expenditures and investments in research and development.
CEO Makoto Uchida will voluntarily forfeit 50% of his monthly compensation starting in November 2024 and the other executive committee members will also voluntarily take a pay reduction accordingly.
Reinforce product competitiveness and ensure growth
Nissan will accelerate some of the plans under The Arc to capitalize on market opportunities.
The company plans to advance the introduction of new energy vehicles in China, and plug-in hybrids and e-POWER in the US, while simultaneously increasing sales per model to enhance model efficiencies.
Nissan aims to reduce vehicle development lead time to 30 months and deepen collaboration with Renault Group, Mitsubishi Motors Corporation (MMC), and Honda Motor Co., Ltd., while exploring more strategic partnerships in the areas of technology and software services.
To facilitate swift decision-making for the turnaround actions, Nissan will appoint a Chief Performance Officer responsible for sales and profit, effective December 1.
Nissan President and CEO Makoto Uchida said: “These turnaround measures do not imply that the company is shrinking. Nissan will restructure its business to become leaner and more resilient, while also reorganizing management to respond quickly and flexibly to changes in the business environment. We an aim to enhance the competitiveness of our products, which are fundamental to our success, and set Nissan back on a path of growth. As a cohesive team, we are dedicated to working together to ensure the successful implementation of our plans.”
1 Net income attributable to owners of the parent
2 Since the beginning of fiscal year 2013, Nissan has reported figures calculated under the equity method accounting for its joint venture with Dong Feng in China. Although net income reporting remains unchanged under this accounting method, the equity-accounting income statements no longer include Dong Feng-Nissan’s results in revenue and operating profit.
Note: Financial forecasts are based on judgements and estimates made using currently available information. They are subject to uncertainty and risk, and final results may differ.
SOURCE: Nissan
