Consolidated Financial Summary for the Fiscal 4th Quarter and the Fiscal Year Ended March 31, 2020
May 12, 2020
Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal fourth quarter and the fiscal year ended March 31, 2020.
The spread of COVID-19 pandemic has stagnated both consumer spending and the economic activities of businesses on a global basis, and future prospects remain uncertain at this moment. Amid such circumstances, production, sales and other Honda business activities are being impacted in all regions, and consolidated financial results for the fiscal fourth quarter and the fiscal year ended March 31, 2020 stated below reflects such impact.
Consolidated sales revenue for the fiscal fourth quarter (January 1, 2020 through March 31, 2020) amounted to 3,458.0 billion yen, a decrease of 14.6% compared to the same period last year, due primarily to a decrease in sales revenue from automobile business. This was despite an increase in sales revenue from financial services business and other factors.
Consolidated operating profit for the fiscal fourth quarter amounted to - 5.6 billion yen (operating loss), a decrease of 47.9 billion yen compared to the same period last year, due primarily to a decrease in profit related to changes in sales revenue and model mix. This was despite the fact that operating profit from motorcycle business during the fiscal fourth quarter experienced a year-on-year increase due primarily to continuing cost reduction and a decrease in selling, general and administrative (SG&A) expenses.
Consolidated operating profit for the fiscal fourth quarter excluding currency effects, one-time issues and the impact of the spread of COVID-19 pandemic can be estimated to be a year-on-year increase of 32.4 billion yen. One-time issues include the impact of changes being made to automobile production operations. The impact of the spread of COVID-19 pandemic includes a decrease in unit sales, an increase in provision for sales incentives and an increase in provision for credit losses for financial services business.
Consolidated sales revenue for the fiscal year (April 1, 2019 through March 31, 2020) amounted to 14,931.0 billion yen, a decrease of 6.0% compared to the previous fiscal year, due primarily to a decrease in sales revenue from automobile business and negative foreign currency translation effects. This was despite an increase in sales revenue from financial services business and other factors.
Consolidated operating profit for the fiscal year amounted to 633.6 billion yen, a decrease of 12.8% compared to the previous fiscal year, due primarily to a decrease in profit related to changes in sales revenue and model mix and negative currency effects. This was despite continuing cost reduction and a decrease in SG&A expenses.
Consolidated profit before income taxes for the fiscal year amounted to 789.9 billion yen, a decrease of 19.3% compared to the previous fiscal year. Consolidated profit for the fiscal year attributable to owners of the parent amounted to 455.7 billion yen, a decrease of 25.3% compared to the previous fiscal year.
Consolidated operating profit for the fiscal year in real terms, excluding currency effects, one-time issues and the impact of the spread of COVID-19 pandemic can be estimated to be a year-on-year increase of 100.8 billion yen.
The quarterly dividend for the fiscal fourth quarter will be 28 yen per share, and the total dividends to be paid for the fiscal year ended March 31, 2020 will be 112 yen per share, an increase of 1 yen per share compared to the previous fiscal year.
Consolidated Financial Results for the Fiscal 4th Quarter Ended March 31, 2020
| 4th quarter ended Mar. 31, 2019 (3 months period) |
4th quarter ended Mar. 31, 2020 (3 months period) |
Difference | ||
| Honda Group Unit Sales*1 (million units) |
Motorcycles | 4.558 | 4.302 | - 0.256 |
| Automobiles*3 | 1.364 | 0.981 | - 0.383 | |
| Life Creation*4 | 2.347 | 2.071 | - 0.276 | |
| Consolidated Unit Sales*2 (million units) |
Motorcycles | 2.837 | 2.694 | - 0.143 |
| Automobiles*3 | 0.979 | 0.777 | - 0.202 | |
| Life Creation*4 | 2.347 | 2.071 | - 0.276 | |
| Financial Results (billion yen) |
Sales revenue | 4,049.1 | 3,458.0 | - 591.0 |
| Operating profit | 42.3 | -5.6 | - 47.9 | |
| Share of profit of investments accounted for using the equity method |
59.1 | 14.4 | - 44.7 | |
| Profit before income taxes | 111.1 | 3.7 | - 107.3 | |
Profit for the period |
-13.0 | -29.5 | - 16.5 | |
Quarterly dividend per share (yen) |
28 | 28 | - | |
| Honda’s Average Rate (yen) |
USD= | 110 | 109 | Up by 1 yen |
Consolidated Financial Results for the Fiscal Year Ended March 31, 2020 (FY20)
| FY19 results | Previously announced FY20 forecasts (Feb. 7, 2020) |
FY20 results | Difference compared to FY19 results | Difference compared to previously announced forecasts | ||
| Honda Group Unit Sales*1 (million units) |
Motorcycles | 20.238 | 19.900 | 19.340 | -0.898 | -0.560 |
| Automobiles*3 | 5.323 | 4.980 | 4.790 | -0.533 | -0.190 | |
| Life Creation*4 | 6.301 | 6.000 | 5.701 | -0.600 | -0.299 | |
| Consolidated Unit Sales*2 (million units) |
Motorcycles | 13.215 | 12.880 | 12.426 | -0.789 | -0.454 |
| Automobiles*3 | 3.748 | 3.365 | 3.318 | -0.430 | -0.047 | |
| Life Creation*4 | 6.301 | 6.000 | 5.701 | -0.600 | -0.299 | |
| Financial Results (billion yen) |
Sales revenue | 15,888.6 | 15,150.0 | 14,931.0 | - 957.6 | - 218.9 |
| Operating profit | 726.3 | 730.0 | 633.6 | - 92.7 | - 96.3 | |
| Share of profit of investments accounted for using the equity method | 228.8 | 210.0 | 164.2 | - 64.6 | - 45.7 | |
| Profit before income taxes | 979.3 | 940.0 | 789.9 | - 189.4 | - 150.0 | |
| Profit for the year attributable to owners of the parent |
610.3 | 595.0 | 455.7 | - 154.5 | - 139.2 | |
| Annual dividend per share (yen) | 111 | 112 | 112 | Up by 1 yen |
- | |
| Honda’s Average Rate (yen) |
USD= | 111 | 108 | 109 | Up by 2 yen |
Down by 1 yen |
Forecasts for the Fiscal Year Ending March 31, 2021 (FY21)
Honda is currently unable to provide a reasonably calculated forecast of the consolidated financial results for the fiscal year ending March 31, 2021, due to impacts relating to the spread of COVID-19. Honda will provide the forecasts of the consolidated financial results for the fiscal year as soon as they become available.
For more details, please check the Investor Relations section of Honda website:
https://www.honda.co.jp/investors/library/financialresult.html (Japanese)
https://global.honda/investors/library/financialresult.html (English)
- *1Honda Group Unit Sales is the total unit sales of the completed products (motorcycles, ATVs, Side-by-Sides, automobiles, power products) of Honda, its consolidated subsidiaries and its affiliates and joint ventures accounted for using the equity method.
- *2Consolidated Unit Sales is the total unit sales of the completed products (motorcycles, ATVs, Side-by-Sides, automobiles, power products) corresponding to consolidated sales revenue, which consists of unit sales of completed products of Honda and its consolidated subsidiaries.
- *3Certain sales of automobiles that are financed with residual value type auto loans by our Japanese finance subsidiaries and sold through our consolidated subsidiaries are accounted for as operating leases in conformity with IFRS and are not included in consolidated sales revenue to the external customers in our automobile business. Accordingly, they are not included in Consolidated Unit Sales, but are included in Honda Group Unit Sales of our automobile business.
- *4Power Products business was renamed as Life Creation business as of April 1, 2019