Financial statements recently lodged with the Australian Securities and Investments Commission (ASIC) reveal that MMAL made an after tax profit of $73.5 million, down $35.5 million from $109 million the previous year.
The result was achieved from revenue of $2.1 billion in the Japanese financial year ending March 31.
Gross sales revenue was up 5.5 per cent from $2 billion the previous year. But return on sales was down from 5.4 per cent to 3.4 per cent year-on-year. Total vehicle sales were up from 71,011 to 73,321, an increase of 2310 units over the previous year.
VFACTS figures from the last Japanese financial year indicate that the Triton is by far the company’s most popular model for the fourth consecutive year accounting for 25,480 sales from a total of 73,321 units. The 4×4 Triton outsells the 4×2 by more than five to one, with 21,039 4x4s sold compared to 4441 4x2s.
The company’s small SUV, the ASX, achieved an annual sales figure of 14,825 in the same period, up from 11,769 the year before and by far the best result for this model since its launch in June 2010.
The company’s increasing sales volumes and revenue but shrinking profits highlight the intense pressure on its profit margins in the highly competitive Australian market which is driven by highly-charged bonus payments to achieve sales targets. If the pressure on margins is reflected across the company’s 200-strong dealer network it would indicate tough times for Mitsubishi dealers despite strong turnover.
Reliance on just two models for 55 per cent of its sales may also leave the company vulnerable to changes in consumer preferences.
However the market leader is the Toyota HiLux which underpinned a 22 per cent rise in Toyota Australia’s profits for the year to March 31, 2016, to $236 million.
Mitsubishi declined to discuss these financial results with GoAutoNews Premium.
By Daniel Cotterill
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