Honda Motor(US:HMC)2024-11-06 12:10Consolidated Financial Results for the Fiscal First Half Year Ended September 30, 2024 Summary of Consolidated Financial Results For H1 FY2025, sales revenue grew 12.4% to ¥10.8 trillion, while net profit attributable to owners declined 19.7% Consolidated Operating Results (Six Months Ended Sep 30) | Indicator | 2024 (JPY millions) | 2023 (JPY millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Sales Revenue | 10,797,613 | 9,609,392 | +12.4% | | Operating Profit | 742,608 | 696,573 | +6.6% | | Profit for the period attributable to owners | 494,683 | 616,301 | -19.7% | | Comprehensive Income | 141,946 | 1,479,892 | -90.4% | | Basic EPS (Yen) | 103.25 | 124.63 | -17.2% | Consolidated Financial Position | Indicator | As of Sep 30, 2024 (JPY millions) | As of Mar 31, 2024 (JPY millions) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 29,273,879 | 29,774,150 | -¥500,271M | | Total Equity | 12,672,556 | 13,005,872 | -¥333,316M | | Equity attributable to owners of the parent | 12,391,444 | 12,696,995 | -¥305,551M | Forecast of Consolidated Financial Results for FY ending Mar 31, 2025 | Indicator | Full-Year Forecast (JPY millions) | YoY Change (%) | | :--- | :--- | :--- | | Sales Revenue | 21,000,000 | +2.8% | | Operating Profit | 1,420,000 | +2.8% | | Profit attributable to owners | 950,000 | -14.2% | | EPS (Yen) | 202.00 | N/A | - A three-for-one stock split was implemented on October 1, 2023, with prior period per-share data adjusted accordingly1011 Condensed Consolidated Interim Financial Statements The statements show increased revenue but lower net profit and cash flow due to finance costs and currency effects Condensed Consolidated Statements of Financial Position Total assets slightly decreased to ¥29.27 trillion, with equity declining due to treasury stock purchases Key Balance Sheet Items (in JPY millions) | Account | Sep 30, 2024 | Mar 31, 2024 | | :--- | :--- | :--- | | Total Assets | 29,273,879 | 29,774,150 | | Total Current Assets | 11,518,144 | 11,872,564 | | Total Non-current Assets | 17,755,735 | 17,901,586 | | Total Liabilities | 16,601,323 | 16,768,278 | | Total Equity | 12,672,556 | 13,005,872 | | Equity attributable to owners | 12,391,444 | 12,696,995 | | Treasury Stock | (775,202) | (550,808) | Condensed Consolidated Statements of Income and Comprehensive Income Sales revenue grew to ¥10.80 trillion, but profit and comprehensive income fell sharply due to adverse financial items Condensed Consolidated Statements of Income (Six Months Ended Sep 30, in JPY millions) | Indicator | 2024 | 2023 | | :--- | :--- | :--- | | Sales Revenue | 10,797,613 | 9,609,392 | | Operating Profit | 742,608 | 696,573 | | Profit before income taxes | 741,953 | 879,285 | | Profit for the period | 526,847 | 653,925 | | Profit attributable to owners | 494,683 | 616,301 | Condensed Consolidated Statements of Comprehensive Income (Six Months Ended Sep 30, in JPY millions) | Indicator | 2024 | 2023 | | :--- | :--- | :--- | | Profit for the period | 526,847 | 653,925 | | Exchange differences on translating foreign operations | (409,590) | 768,426 | | Total other comprehensive income | (384,901) | 825,967 | | Comprehensive income for the period | 141,946 | 1,479,892 | Condensed Consolidated Statements of Changes in Equity Total equity decreased by ¥333.3 billion, driven by dividends, share buybacks, and other comprehensive losses Changes in Equity (Six Months Ended Sep 30, 2024, in JPY millions) | Description | Amount | | :--- | :--- | | Balance as of April 1, 2024 | 13,005,872 | | Profit for the period | 494,683 | | Other comprehensive income, net of tax | (387,571) | | Dividends paid | (188,418) | | Purchases of treasury stock | (224,716) | | Balance as of September 30, 2024 | 12,391,444 | Condensed Consolidated Statements of Cash Flows Net cash from operations decreased significantly, leading to a net reduction in cash and cash equivalents Key Cash Flow Data (Six Months Ended Sep 30, in JPY millions) | Indicator | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | 68,691 | 379,952 | | Net cash used in investing activities | (519,106) | (289,126) | | Net cash provided by financing activities | 317,601 | 243,047 | | Net change in cash and cash equivalents | (332,276) | 637,499 | | Cash and cash equivalents at end of period | 4,622,289 | 4,440,513 | Notes to Condensed Consolidated Interim Financial Statements Notes detail segment performance, a new share repurchase program, and contingencies for airbag inflator costs Segment Performance (Six Months Ended Sep 30, 2024, in JPY millions) | Segment | External Sales Revenue | Segment Profit (Loss) | | :--- | :--- | :--- | | Motorcycle Business | 1,810,786 | 325,852 | | Automobile Business | 6,987,551 | 258,037 | | Financial Services Business | 1,811,879 | 162,707 | | Power Products and Other | 187,397 | (3,988) | - On November 6, 2024, the Board of Directors approved the acquisition of up to 70 million shares of its own common stock for a total amount of up to ¥100 billion29 - Honda continues to face potential costs related to airbag inflator recalls, with future losses that cannot be reasonably estimated at this time30 Notice Concerning Acquisition of the Company's Own Shares The Board approved a share buyback of up to 70 million shares for ¥100 billion to improve capital efficiency - The primary reasons for the share repurchase are to improve the efficiency of its capital structure and to implement a flexible capital strategy34 Details of Share Acquisition Program | Detail | Specification | | :--- | :--- | | Class of shares | Common stock | | Total number to be acquired | Up to 70,000,000 shares (1.5% of issued shares excl. treasury) | | Total amount | Up to 100 billion yen | | Period of acquisition | November 7, 2024 to October 31, 2025 | | Method of acquisition | Market purchases on the Tokyo Stock Exchange | Treasury Stock as of September 30, 2024 | Description | Number of Shares | | :--- | :--- | | Total issued shares (excluding treasury stock) | 4,682,564,269 | | Total treasury stock | 597,435,731 |