Toyota Motor Corporation announced a record net profit of 4.9 trillion yen ($31.8 billion) for the fiscal year ended March, marking a significant 100% increase from the previous year. The impressive results were fueled by robust demand for hybrid vehicles and the benefits of a weaker yen. The automotive giant also disclosed plans for substantial investments aimed at enhancing its supply chain and advancing future mobility solutions, including electric vehicles and hydrogen technologies.
During a recent earnings call, Toyota President Koji Sato highlighted the company’s strategic focus on integrating generative artificial intelligence into its operations, particularly in autonomous driving. Sato revealed plans to invest 2 trillion yen ($12.9 billion) in the coming fiscal year to bolster these initiatives.
Toyota’s financial success was underpinned by a sharp rise in operating income, which nearly doubled to 5.3 trillion yen, and a 21.4% increase in revenue, reaching 45 trillion yen. Both figures set new records for the company. The favorable exchange rate alone added an impressive 685 billion yen to Toyota’s operating income.
Global vehicle sales also reached new heights with over 10.3 million units sold, including the luxury Lexus brand, marking a 7.3% increase from the previous year. Despite this growth, Toyota has set a conservative profit forecast for the next fiscal year, projecting a net profit decline of 27.8% to 3.6 trillion yen.
Reflecting on the company’s robust supply chain and the recent challenges faced, including misconduct at Daihatsu Motor, Sato emphasized Toyota’s commitment to sustainable growth and stakeholder collaboration. This approach is evident in Toyota’s planned investment of 380 billion yen in human resources, which includes supporting labor costs for suppliers and dealers.
As part of its shareholder return strategy, Toyota announced an increase in its year-end dividend to 45 yen per share and set the annual dividend at 75 yen, with total dividends exceeding 1 trillion yen. The company also plans a share buyback of up to 1 trillion yen and will retire 520 million shares worth 2 trillion yen.
In the backdrop of a dynamic market environment, Toyota remains committed to its multipathway strategy in vehicle electrification, aiming to meet diverse customer demands across global markets. The strategy underscores Toyota’s ongoing transformation from a traditional automaker into a broad-based mobility provider, focusing on the convergence of digital technologies and transportation.
