Honda Motor Clocks 16% Sales Growth In FY23, Expects Stronger Motorcycle Sales In FY24 - Honda Motor Co (NYSE:HMC)

Honda Motor Co Ltd HMC reported FY23 sales growth of 16.2% Y/Y to ¥16.9 trillion, led by higher Motorcycle business revenues and favourable foreign currency translations.
Automobile business sales revenue rose 15.2% Y/Y to ¥10.8 trillion, and Motorcycle business sales revenue increased 33.1% Y/Y to ¥2.91 trillion.
Motorcycles unit sales increased 10.2% Y/Y to 18,757, while automobile unit sales fell 9.5% Y/Y to 3,687.
The operating profit for the year declined 3.7% Y/Y to ¥839.3 billion, with an operating margin of 5.0%, mainly on higher product warranty expenses.
Profit for the period attributable to owners of the parent fell 1.7% Y/Y to ¥695.2 billion.
As of Mar 31, 2023, cash and cash equivalents totaled ¥3.80 trillion.
Honda bought back shares worth ¥170.0 billion and paid ¥120 in dividends in FY23.
Also, today, Honda Motor and GS Yuasa International Ltd signed a joint venture agreement to achieve carbon neutrality.
Also related: Automakers Warn The Proposed US Emissions Rules Pose Challenges: Report
Outlook: Honda sees FY24 sales of ¥18.2 trillion (+7.6% Y/Y), operating profit of ¥1.0 trillion (+19.1% Y/Y), profit attributable to owners of the parent of ¥800 billion (+15.1% Y/Y).
The company projects motorcycles unit sales of 19,180 (+2.3% Y/Y) and automobile unit sales of 4,350 (+18.0% Y/Y) in FY24. Honda expects motorcycle unit sales to exceed last year's figure on solid sales in Indonesia and India.
The automaker plans to repurchase shares worth ¥200.0 billion and pay ¥150 in dividends in FY24.
For FY26, the company expects an operating margin of 7.0% or higher.
Last month, Honda stated its plans to sell only electric vehicles (EVs) globally by 2040.
Price Action: HMC shares are trading higher by 1.22% at $27.35 premarket on the last check Thursday.

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