Cost control boosts Honda Motor full year profit

Despite some unfavourable factors such as a decrease in demand due to the impact of the COVID-19 pandemic and the impact of semiconductor supply shortages, Honda Motor operating profit for the fiscal year ended 31 March, 2021 was JPY660.2bn due primarily to control of selling, general and administrative (SG&A) expenses and cost reduction efforts based on a review of business activities, as well as an increase in profit due to a year-on-year difference in the amount of the provision for credit losses recorded for financial services business.

Despite the impact of an increase in raw material prices and a year-on-year difference in the amount of the provision for credit losses recorded, Honda plans to achieve a consolidated operating profit of 660bn yen for the fiscal year ending 31 March, 2022, equivalent to that of FY21, by increasing unit sales and making progress in initiatives to solidify its existing businesses.

Although production adjustments are currently being made at some Honda production operations globally due primarily to semiconductor supply shortages, Honda will minimise the impact of such production adjustments for the full-year results.

Quarterly dividend for the fiscal fourth quarter will be JPY54 per share; total dividends for the fiscal year will be JPY110 per share, an increase of JPY28 compared to the previously announced forecast.

The forecast for total dividends to be paid for the fiscal year ending 31 March, 2022 is JPY110 per share, equivalent to that of FY21.

With the aim to ensure stable and constant dividend distribution, the frequency of dividend payments will be changed to twice a year.

Sales revenue for the year ended March 2021 was JPY13,170.5bn, a year-on-year decrease of 11.8% due to a decrease in sales revenue from all businesses due primarily to the impact of the COVID-19 pandemic.

Operating profit of JPY660.2bn was up 4.2%. Profit before income taxes rose 15.7% to JPY914bn and net profit was up 44.3% to JPY657.4bn.

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