Mitsubishi Corp Reports 18.4% Drop in FY2023 Net Profit, Forecasts 950 Billion Yen for FY2024

Mitsubishi Corp, a Japanese trading house, reported an 18.4% decrease in its net profit for the fiscal year ended March 2023, reaching 964 billion yen ($6.2 billion). This figure fell short of analysts' estimates of 979 billion yen but still marked the company's second-highest annual profit on record.

The decline in net profit was attributed to lower Australian metallurgical coal prices, among other factors. Despite the drop, Mitsubishi expects its net profit for the fiscal year ending March 2025 to be 950 billion yen and forecasts it will surpass 1 trillion yen in the years after.

To boost shareholder returns, Mitsubishi plans to increase its dividend payout in the current fiscal year to 100 yen per share from 70 yen per share, raising the payout ratio by 2 percentage points to 42%.

Why this matters: Mitsubishi Corp's financial performance and forecasts provide insights into the global commodities market and the Japanese economy. The company's ability to maintain high profits despite challenges reflects its resilience and adaptability in navigating market fluctuations.

In a statement, Mitsubishi Corp emphasized its commitment to delivering value to shareholders while continuing to invest in growth opportunities. The company remains optimistic about its future prospects, with expectations of net profit surpassing 1 trillion yen in the coming years.

Key Takeaways

• Mitsubishi's FY2023 net profit fell 18.4% to 964 billion yen, missing estimates.
• Decline attributed to lower Australian coal prices, but profit still 2nd-highest on record.
• Mitsubishi forecasts net profit to reach 950 billion yen in FY2025, surpassing 1 trillion yen later.
• Dividend payout to increase from 70 yen to 100 yen per share, raising payout ratio to 42%.
• Mitsubishi's performance reflects resilience in navigating market challenges, with optimistic outlook.