Honda Clocks Double-Digit Revenue Growth In Q1, Reaffirms FY24 Outlook

Honda Motor Co Ltd HMC reported Q1 FY24 sales revenue growth of 20.8% Y/Y to ¥4.62 trillion. 

Sales revenue of the Automobile business rose 30.2% Y/Y to ¥3.03 trillion, the Motorcycle business increased 12.0% Y/Y to ¥756.9 billion, and the Financial Services business grew 3.1% Y/Y to ¥773.6 billion. 

Motorcycles unit sales increased 5.2% Y/Y to 4,473, while automobile unit sales grew 10.6% Y/Y to 901. 

The operating profit was up 77.5% Y/Y to ¥394.4 billion ($2.76 billion), beating the consensus of ¥324.74 billion, as per Reuters.

The company reported a margin expansion of 2.7 ppt Y/Y to 8.5% in Q1, with improved profitability in the Automobile business, mainly in North America.

Profit for the period attributable to owners of the parent increased 143.3% Y/Y to ¥363.0 billion.

EPS of ¥219.06 came higher than ¥87.23 a year ago.

As of June 30, 2023, cash and cash equivalents totaled ¥4.08 trillion.

Outlook: Honda reiterated its FY24 sales outlook 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. 

Stock Split: The company plans to split one common share into three shares to reduce the stock price per investment unit, effective October 1, 2023.

Price Action: HMC shares are trading higher by 2.95% at $32.07 premarket on the last check Wednesday.