Suzuki Motor (7269) Q4 2024 earnings summary

Executive summary

• FY2023 net sales and profits reached records; January–March net sales and operating profit also hit record highs.

• Higher volume, improved mix and pricing, favorable FX, stabilized raw-material prices and cost-aligned pricing supported results.

Financial highlights

• FY2023 net sales were ¥5,374.3bn, up 15.8%; operating profit was ¥465.6bn, up 32.8%, with an 8.7% margin.

• Ordinary profit rose 27.6% to ¥488.5bn; profit attributable to owners of parent rose 21.1% to ¥267.7bn.

• January–March net sales reached ¥1,526.8bn and operating profit ¥118.9bn, up 24% and 42% YoY.

• Global automobile sales rose 5.6% to 3.168m units; motorcycle sales rose 2.4% to 1.912m units.

• Total assets were ¥5,385.6bn and net assets ¥3,138.4bn at year-end; operating cash flow was ¥446.0bn and cash and equivalents ¥853.6bn.

Outlook and guidance

• FY2024 IFRS forecast: net sales ¥5,600bn, operating profit ¥480bn, profit before tax ¥550bn and parent-attributable profit ¥310bn; J-GAAP operating profit reference ¥470bn.

• FY2024 global automobile sales forecast 3.254m units, up 2.7%; motorcycle sales forecast 1.892m units, down 1.1%.

• Operating profit forecast rises ¥14.4bn to ¥480bn on an IFRS basis; external factors are forecast to contribute zero, with +¥49.4bn excluding external factors.

• FY2024 capex is forecast at ¥400bn and R&D expenses at ¥260bn; depreciation is forecast at ¥200bn under IFRS and ¥207.5bn under J-GAAP.

• A new mid-term management plan, including technology, is planned for announcement by FY2024 year-end.