Business performance
Latest Results
Consolidated Financial Results for FYE2024 (April 1, 2023 to March 31, 2024)
(100 Millions of yen)
| FYE2023 Full Year Results |
FYE2024 Full Year Results |
Change | % | ||
|---|---|---|---|---|---|
| Revenue | 37,745 | 47,029 | 9,285 | 24.6% | |
| Operating profit | 2,675 | 4,682 | 2,007 | 75.0% | |
| Profit before tax | 2,784 | 5,326 | 2,542 | 91.3% | |
| Profit for the period attributable to owners of parent |
2,004 | 3,851 | 1,847 | 92.1% | |
| Consolidated unit sales (1,000 units) |
852 | 976 | 124 | 14.5% | |
| Overseas | 753 | 878 | 125 | 16.6% | |
| Japan | 100 | 99 | −1 | −0.8% | |
| SUBARU exchange rate | ¥135/US$ ¥141/EURO |
¥144/US$ ¥154/EURO |
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Despite continued parts supply constraints, particularly for semiconductors, and logistical challenges, the impact was minimized through various initiatives, including flexible adjustment of production plans. As a result, global production increased 10.9% to 970,000 units.
Production in Japan rose 4.7% to 602,000 units, while production in the U.S. grew 23.0% to 368,000 units.
As a result of the production increase, global unit sales rose 14.5% to 976,000 units, led by steady sales in the key North American market.
Consolidated revenue rose 24.6% to 4,702.9 billion yen, due to factors including the increase in sales volume and the positive impact of foreign exchange rates.
As factors such as increased sales volume and the positive impact of foreign exchange rates more than offset the increase in SG&A expenses, operating profit rose 75.0% to 468.2 billion yen, profit before tax grew 91.3% to 532.6 billion yen, and profit for the period attributable to owners of parent increased 92.1% to 385.1 billion yen.
FYE 2024
Analysis of Variance in Operating Profit (Consolidated)
The main drivers of higher profit were an improvement in sales volume & mixture, etc., and gain on currency exchange.
Sales volume & mixture, etc. rose 187.5 billion yen due mainly to an increase in unit sales, revised selling prices, and improved market mix.
The gain on currency exchange was 126.5 billion yen, caused mainly by the approximately 9-yen depreciation of the yen against the U.S. dollar.
The main factor working to reduce profit was a deterioration in SG&A expenses, etc.
As a result of the impact of currency exchange rates due to weaker yen and an increase in warranty claims of 63.1 billion yen, including the recording of one-off costs, SG&A expenses, etc. had a negative impact of 103.2 billion yen.
Past 5 years
Revenue & Operating profit
Revenue
Operating Profit / Operating Margin
Consolidated automobile unit sales
Overall automobile demand in the United States, our mainstay market, increased from the previous fiscal year by about 11% to approximately 15.8 million units. Total automobile demand in Japan increased by around 3% to approximately 4.50 million units.
Demand for SUBARU vehicles was strong primarily in North America including the U.S., which is our mainstay market, as well as Canada, and unit sales remained strong. Overseas unit sales increased year on year by 125,000 units (16.6%) to 878,000 units.
While domestic unit sales decreased year on year by 1,000 units (0.8%) to 99,000 units, combined overseas and domestic unit sales rose year on year by 124,000 units (14.5%) to 976,000 units.
Forecast
Forecast of Consolidated Results for FYE2025 (April 1,2024 to March 31,2025)
Announced on November 1, 2024
(100 Millions of yen)
| FYE2024 Full Year Results |
FYE2025 Full Year Forecast |
Change | % | ||
|---|---|---|---|---|---|
| Revenue | 47,029 | 47,200 | 171 | 0.4% | |
| Operating profit | 4,682 | 4,000 | −682 | −14.6% | |
| Profit before tax | 5,326 | 4,200 | −1,126 | −21.1% | |
| Profit for the period attributable to owners of parent |
3,851 | 3,000 | −851 | −22.1% | |
| Consolidated unit sales (1,000 units) |
976 | 950 | −26 | −2.7% | |
| Overseas | 878 | 838 | −40 | −4.5% | |
| Japan | 99 | 112 | 13 | 13.6% | |
| SUBARU exchange rate | ¥144/US$ ¥154/EURO |
¥149/US$ ¥162/EURO |
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Based on recent sales trends and inventory levels in overseas markets, the Company is revising its initial production forecast announced on May 13, 2024, downward by 10,000 units to 950,000 units. Similarly, the consolidated unit sales forecast has been reduced by 30,000 units to 950,000 units.
On the other hand, the revenue and profit forecasts for the full year remain unchanged from the initial announcement*, incorporating factors such as controlling the increasing trend of sales incentives to industry-low levels and the effect of yen depreciation, with consolidated revenue expected to be 4,720 billion yen and operating profit 400 billion yen.
The latest forecasts for FYE 2025 are based on exchange rate assumptions of 149 yen to the U.S. dollar and 162 yen to the euro.
*Initial forecast for FYE 2025 (Announced on May 13, 2024):
- Revenue: 4,720 billion yen
- Operating profit: 400 billion yen
- Profit before tax: 420 billion yen
- Profit for the period attributable to owners of parent: 300 billion yen
Currency rate assumptions: 142 yen/US$, 153 yen/euro
FYE 2025 Plan
Analysis of Variance in Operating Profit (Consolidated)
We expect a gain on currency exchange of 63.8 billion yen, caused mainly by the approximately 5-yen depreciation of the yen against the U.S. dollar.
Next, we anticipate a negative impact from sales volume & mixture, etc. of 90.9 billion yen.
We also expect an increase in R&D expenses of 30.2 billion yen in preparation for the introduction of electrified products going forward, and project negative cost impacts of 21.7 billion yen, as costs continue to trend upward due to measures to mitigate the burden on suppliers of labor and energy costs.
