Mazda announces Q1 results for fiscal year 2020 – net income down 74.5%, global sales down 12.5% YoY

Mazda announces Q1 results for fiscal year 2020 – net income down 74.5%, global sales down 12.5% YoY

Mazda has released its first quarter financial results for the fiscal year ending March 2020, which revealed a revenue of 848.9 billion yen for the first three months ended June 30, 2019. This represents a 23.4 billion yen or 2.7% decrease compared to the corresponding period of the previous fiscal year.

The dip in revenue is attributed to a 12.5% year-on-year decline in global sales volume, with the Japanese carmaker delivering 353,000 cars in the quarter compared to 403,000 cars in Q1 FY 2019.

Across all markets, with the exception of Europe, sales declined by between 10-21%. Focusing on the ASEAN region, which is bundled under “other markets,” sales of Mazda vehicles dropped from 32,000 units to 29,000 units (-11%), with Thailand (15,000 units) and Vietnam (7,000 units) both experiencing year-on-year declines of 10% and 3% respectively.

Mazda announces Q1 results for fiscal year 2020 – net income down 74.5%, global sales down 12.5% YoY

Mazda’s operating income amounted to seven billion yen (-78.8%), which is close to Nikkei’s earlier report, while ordinary income totalled 9.1 billion yen (-78.3%). The company ended the quarter with a net income of 5.2 billion yen, a decrease of 15.3 billion yen or 74.5% from Q1 FY2019.

Despite an unfavourable first quarter, the carmaker’s forecast for the full fiscal year is optimistic, as it expects to deliver 1.618 million cars, which is a 4% increase from the 1.561 million cars it recorded in FY 2019. The company also projects a revenue of 3,700 billion yen and net income of 80 billion yen for FY 2020, which are gains of 4% and 27% from FY 2019.

In terms of key initiatives, the company says the latest Mazda 3 “has successfully increased the ratio of higher-grade models and per-unit revenue in markets where it has been introduced,” including for future products. It also aims to reduce incentives globally and shift to a higher price zone, while promoting sales by focusing on communicating product value to customers.

Mazda announces Q1 results for fiscal year 2020 – net income down 74.5%, global sales down 12.5% YoY

Later in April, assembly of the CX-30, Mazda’s second model in its next-generation product line-up, will commence at the Hiroshima Plant ahead of a rollout this summer. This will be followed by the start of production of the CX-30 at its Mexico plant by the end of the year.

Additionally, preparations are on track for a new manufacturing plant in Huntsville, Alabama, which is part of a joint venture with Toyota, with the foundation work already completed and steel frame construction is currently underway.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • Berjaya Mazda sales here picked up 40% though.

    Like or Dislike: Thumb up 6 Thumb down 4
    • Calvin on Aug 01, 2019 at 4:54 pm

      According to MAA data, Mazda 1H 2019 sales went down by 3.0% while market share hovered at tiny 2.2%.

      Like or Dislike: Thumb up 0 Thumb down 0
    • Mazda1530 on Aug 01, 2019 at 5:03 pm

      Proton X70 is the best car with modern design, exciting features and affordable price. No wonder sales of Mazda drop significantly in here as Mazda cars look so boring, no innovations, less features and skyhigh price.

      Like or Dislike: Thumb up 9 Thumb down 8
  • Not Toyota Fan on Aug 01, 2019 at 4:10 pm

    Ouch !!!

    Like or Dislike: Thumb up 6 Thumb down 0
    • Optimus on Aug 01, 2019 at 7:37 pm

      Exactly. If you have a premium car, you dont sell it at mass market price. If the durian seller offer those premium durian Musang king at durian kampung price. Konfem low profit kan kan

      Like or Dislike: Thumb up 2 Thumb down 0
    • Ouch Dee on Aug 01, 2019 at 7:54 pm

      Ouch ouch!

      Like or Dislike: Thumb up 2 Thumb down 0
  • Probably their products are not what customer want. No doubt their car quality is better than other Japanese brand but not so practical, inside is cramp and price is higher, no wonder sales drop.

    Like or Dislike: Thumb up 40 Thumb down 3
  • 6 hours between the (almost) same news. I’m not sure it’s worth an article for previous one.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Haidi on Aug 01, 2019 at 8:07 pm

    Different company, different strategy.

    Toyota: focus on the market that buying a car with “reliability” in line number 1.

    Honda: focus on the market that love surprising power from the heart of the car.

    Mazda: focus on the market that appreciate nice build quality and don’t bother the price tag.

    Nissan: focus on the market that… what…ever.

    Which strategy is the winner?!

    Like or Dislike: Thumb up 1 Thumb down 2
    • Tycoon on Aug 02, 2019 at 12:14 pm

      Nissan is performing very good in other countries. Better than Honda. But here in this stupid country, Tan Chong is ruining Nissan

      Like or Dislike: Thumb up 5 Thumb down 0
      • tycoon idiot on Aug 02, 2019 at 2:40 pm

        oit tycoon…if this country is stupid…then get lost la…u stupid idiot..
        let see whether smart country want a stupid idiot tycoon like u.

        Like or Dislike: Thumb up 2 Thumb down 2
      • Haidi on Aug 02, 2019 at 3:35 pm

        We all know that right? :E

        Like or Dislike: Thumb up 0 Thumb down 0
  • Improve the interior space and put in a turbo charged engine.. people are embracing turbo charging, just look how Civic TC is well received in all market..

    Drop the CX3 and bring in the CX30 as soon as possible..

    Like or Dislike: Thumb up 9 Thumb down 2
  • Ahmadjr on Aug 01, 2019 at 9:55 pm

    For young executives and professionals, you should choose mazda instead of bmw or mercedes. Its much cheaper, offer pretty much the same with low fuel consumption and insurance

    Like or Dislike: Thumb up 0 Thumb down 9
    • Dude, most people buying BMW and Merc for the brand image. Mazda just doesn’t have the same brand cachet and perception of luxury. Even Lexus avoid directly comparing itself with BMW, Merc and Audi.

      Like or Dislike: Thumb up 1 Thumb down 0
    • Young Exec on Aug 02, 2019 at 11:29 pm

      Give me free also I dont want.

      Like or Dislike: Thumb up 0 Thumb down 0
 

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