Toyota: record results in 2021/22 but new targets set back

Global auto giant Toyota posted new record results in 2021/22, thanks to robust sales and the fall of the yen in particular, while delivering cautious forecasts for its new financial year on Wednesday due to numerous headwinds.

The Japanese group Toyota signs new record results. The automotive giant notably signed a record annual net profit of 2,850.1 billion yen (20.7 billion euros), a jump of 26.9% over one year, but expects it to fall to 2,260 billion yen in 2022/23 (-20.7%), according to a statement.

It also expects a hard landing (-19.9%) in its annual operating profit, to 2.4 trillion yen, after it took off by 36.3% to 2.995.7 billion yen in 2021/ 22.

Because Toyota is planning an “unprecedented” increase in its raw material and logistics costs, he explained in a presentation.

The group has, however, drawn up its new annual targets based on an exchange rate of one dollar for 115 yen and one euro for 130 yen, conservative projections as the Japanese currency is currently trading at much lower levels. : the greenback is currently hovering around 130 yen, and many economists expect this trend to continue.

Record turnover

Despite its production difficulties due to the global shortage of semiconductors and the Covid-19, Toyota also generated record sales in its fiscal year ended March 31, at 31,379.5 billion yen (228.3 billion euros), an increase of 15.3% over one year.

And he is betting on a further 5.2% increase in sales in value in 2022/23, to 33 trillion yen.

The group also announced on Wednesday a program to buy back its own shares for a maximum amount of 200 billion yen (1.4 billion euros) and a total dividend of 52 yen per share for the past financial year, compared to 48 yen for 2020/21.

However, the Toyota title dropped around 3% on the Tokyo Stock Exchange after the publication of its results, with investors mainly retaining the group’s message of caution for its new financial year.

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