Panasonic Q1 Highlights: Profits Surge Significantly, Raises FY24 Net Profit Outlook

Panasonic Holdings Corp PCRFY reported a Q1 FY24 sales growth of 3% Y/Y to ¥2.03 trillion on higher sales in Automotive, Connect, and automotive batteries and favorable currency translation.

In USD terms, sales of $14.80 billion missed the consensus of $15.07 billion, as per Reuters. 

By segments, sales remained flat Y/Y at ¥838.7 billion in Lifestyle, while it rose by 27% Y/Y to ¥341.0 billion in Automotive, 8% Y/Y to ¥263.3 billion in Connect, fell 16% Y/Y to ¥249.0 billion in Industry and up 5% Y/Y to ¥238.4 billion in Energy businesses.

Operating profit rose 42% Y/Y to ¥90.4 billion vs. analyst forecast of ¥91.18 billion, aided by higher sales, price revisions, and rationalization, and attaining tax credit under the U.S. Inflation Reduction Act.

Net profit attributable surged significantly to ¥200.9 billion from ¥48.9 billion a year ago. 

EPS of ¥86.06 was considerably higher than ¥20.97 a year ago. 

As of June 30, 2023, operating cash flow stood at ¥226.6 billion, and cash and cash equivalents came in at ¥909.9 billion. 

Outlook: Panasonic reiterated FY24 revenue of ¥8.5 trillion with an operating profit of ¥430 billion.

On the other hand, the company raised net profit to ¥460.0 billion from ¥350.0 billion, reflecting lower income taxes related to the liquidation of Panasonic Liquid Crystal Display Co., Ltd. and its debt waiver.

Also Read: Panasonic Energy Eyes Expansion With Four New Factories For EV Battery Manufacturing: Report

Price Action: PCRFY shares closed lower by 1.13% to $12.23 on Friday.