Copyright FOURIN, Inc. 2023
Honda Motor’s Global Financial Results in FY 2022
Honda Motor’s consolidated sales in FY 2022 increased by 16.2% from the previous year to 16.9 trillion JPY, a record high, but operating profit dropped by 3.7% to 839.4 billion JPY. Despite the effects of a weaker yen and higher product prices, profits declined due to a decline in automobile production and sales, soaring raw material prices and the impact of inflation. Operating profit margin fell by 1.0 point to 5.0%.
Sales in the automobile sector increased by 15.2% year-on-year to 10.7 trillion JPY, but operating income decreased 82.2% year-onyear to 42 billion JPY, and operating profit margin fell to 0.4%, down 2.1 percentage points. Retail performance was lower than the previous year in Honda’s major markets of Japan, the United States and China. In the United States, semiconductor supply improved in the fourth quarter, as a result of which sales exceeded the same period of the previous year, but in China, sales decreased significantly due to the impact of the end of tax breaks on automobiles and a shortage of BEV products.
Honda performed well in the motorcycle sector, with sales increasing 33.1% year-on-year to 2.9 trillion JPY, operating income rising 56.9% year-on-year to 488.7 billion JPY and operating profit margin going up 2.5 percentage points to 16.8%. Honda’s motorcycle business accounted for 17.2% of consolidated sales, but it accounted for 58.2% of consolidated operating income, up from 35.8% in the previous year, further increasing the company’s dependence on motorcycle sales.