Toyota's Operating Profit Hits Record High Last Year... First Japanese Company to Surpass 5 Trillion Yen

Operating Profit Increased by 96% Compared to Previous Quarter
Strong Performance Driven by Weak Yen and Hybrid Sales
"Will Focus Investments on Hydrogen Cars, EVs, and SDVs"

Toyota Motor Corporation achieved its highest-ever operating profit for the 2023 fiscal year (April 2023 to March 2024). The weak yen and strong sales of hybrid vehicles (HV) drove the performance.

Toyota Motor announced on the 8th that its operating profit for the 2023 fiscal year increased by 96.4% compared to the previous year, reaching 5.3529 trillion yen (approximately 47.0883 trillion KRW). According to Nihon Keizai Shimbun (Nikkei), this operating profit exceeding 5 trillion yen is the first among Japanese companies. Toyota's net profit (4.9449 trillion yen) and sales (45.0953 trillion yen) also rose by 101% and 21% respectively from the previous year, both hitting record highs.

[Image source=Yonhap News]

The background to this record-breaking performance includes strong sales of hybrid vehicles and improved exports due to the weak yen. In particular, hybrid sales for the 2023 fiscal year reached a record high of 3.55 million units, a 31% increase from the previous year. Nikkei pointed out that while subsidies for electric vehicles (EVs) are being discontinued worldwide, hybrids are gaining attention for their reasonable price and fuel efficiency. It also analyzed that the historic weak yen offset cost increases caused by rising raw material, labor, and energy prices, generating profits worth approximately 685 billion yen.

Toyota Motor also presented its performance forecast for the 2024 fiscal year (April 2024 to March 2025). Sales are expected to increase by 2.0% to 46 trillion yen, while operating profit is projected to decline by about 20% to 4.3 trillion yen. The anticipated drop in operating profit is interpreted as reflecting Toyota’s plan to spend 450 billion yen to strengthen supply chain infrastructure, including labor and material costs for its partner companies.

At a press conference on the same day, Koji Sato, President of Toyota Motor, said regarding the record-high operating profit, "This is the result of product-centered management and the business foundation we have built up over time." He added, "Next year, we plan to accelerate investments, allocating 380 billion yen to human capital as part of our 'multi-path strategy implementation' plan." He also announced, "To transform into a mobility company (a company providing all transportation services), we will focus on electric vehicles, hydrogen vehicles, and 'software-defined vehicles (SDV)' that enhance vehicle value by updating software."

Meanwhile, on the Tokyo Stock Exchange that day, Toyota Motor’s stock closed at 3,579 yen, down 0.56% from the previous session. It has risen 35% so far this year.

This content was produced with the assistance of AI translation services.