In fiscal year 2020, consolidated net revenue declined to JPY7.86 trillion, resulting in an operating loss of JPY150.7bn, which the automaker said was “significantly improved from the full-year forecast at the beginning of the fiscal year” and a net loss of JPY448.7bn.
This includes costs associated with restructuring of JPY61.3bn yen as Nissan focused on operational and efficiency improvements to transform the business. Free cash flow for the automotive business was a negative 391.0bn yen.
Nissan said it maintained “sufficient liquidity to steer through this challenging business environment”. At year-end, cash and cash equivalents for the automotive business totaled JPY1.9 trillion. Automotive net cash was JPY636.0bn. In addition, the company continues to have access to approximately JPY2.2 trillion in unused committed credit facilities.
In fiscal year 2020, Nissan has shown quarter by quarter steady recovery through strengthened financial base, improved selling expenses and fixed cost reduction further supported by renewed product lineup.
Nissan said it managed to grow sales during an unprecedently challenging period. In particular, sales volume in the fourth quarter grew significantly compared to the third quarter. The automaker said it made notable improvements in the quality of sales, optimised sales incentives and reduced inventory while improving revenue per unit, resulting in a significant reduction in operating loss in the fourth quarter compared to the same period last year.
“The company’s full-year performance was impacted by the global COVID-19 pandemic which led to a decline in sales volumes, particularly in the first quarter, sales recovered in the following quarters. However, the business climate change continues to be a challenge. In addition to the COVID-19 impact, external factors including exchange rate fluctuations and semiconductor supply shortages compressed the company’s profitability,” the automaker said in a statement.
Global retail volume for fiscal year 2021 is expected to increase by 8.6% from a year earlier 4.4m units.
Nissan has set its operating profit forecast at plus or minus zero.