Impact of the Spread of COVID-19 on Factory Operations, Sales and Financial Results
First written in FY2020. 2 of 8 entries say "Mitigated", first in FY2021-Q2. Latest entry: FY2023.
The whole theme swung hardest in 2020: 103 of 175 companies on the "Worse" side.
- FY2023MitigatedAnnual report
「Although COVID-19 appears to be moving toward containment at present, a renewed spread could adversely affect the Group's business results and financial position.」
The impact of the infectious disease on business was described as moving toward containment, but risks to earnings and the financial position in the event of a renewed spread remain. - FY2022RestatedAnnual report
「The spread of COVID-19 continues to have an impact. Although vaccination programmes are progressing worldwide, the timing of the pandemic's containment and its future impact remain uncertain, and may adversely affect the Group's business results and financial position.」
The disclosure noted progress in vaccinations, while stating that the impact of the infectious disease and uncertainty over when it will subside continue. - FY2022-Q2Cumulative recovery and quarterly deteriorationAnnual report
「During the six-month period ended in the second quarter, revenue rose by ¥403.4 billion, or 31.8%, year on year to ¥1.6736 trillion, partly because earnings had deteriorated substantially in the same period of the previous year due to the impact of COVID-19. However, in the second quarter, revenue declined by ¥16.7 billion, or 2.0%, year on year to ¥828.2 billion, due to parts supply shortages, including semiconductors, and production cuts associated with the impact of COVID-19.」
Compared with the same period of the previous year, which was affected by COVID-19, first-half earnings recovered. However, in the second quarter, earnings again fell below the previous-year level due to production cuts associated with COVID-19 and parts supply shortages. - FY2022-Q1Earnings recovered from the previous year, but impacts remainAnnual report
「During the cumulative first-quarter period, consolidated sales increased by ¥420.1 billion year on year to ¥845.4 billion compared with the previous year, which was severely affected by the global spread of COVID-19. Operating income increased by ¥53.2 billion year on year to ¥54.5 billion, due to higher sales, particularly promotional sales of vehicles in inventory, foreign exchange gains and other factors. However, sales remained ¥62.1 billion and operating income ¥8.2 billion below the level of two years earlier, due to the renewed spread of COVID-19 in India, production cuts caused by semiconductor shortages in Japan, higher raw material prices, increased R&D expenses and other factors.」
Earnings recovered substantially from the severe impact of the pandemic in the same period of the previous year. However, the effects of renewed infections in India, the semiconductor shortage and soaring raw material prices remain, and earnings have not recovered to the level of the same period two years earlier. - FY2021-Q3Business activities normalising alongside new sources of uncertaintyAnnual report
「During the subsequent third quarter (October to December), production and sales activities continued to normalize, supported by a strong festival season in India. However, the Group's operating environment remains extremely uncertain due to the spread of COVID-19 variants, semiconductor shortages and rising raw material prices.」
While production and sales activities, including in India, continued to normalise, the environment surrounding infectious disease risk has not improved uniformly, with uncertainty remaining due to factors including the spread of COVID-19 variants. - FY2021-Q2MitigatedAnnual report
「During the following second quarter of the current fiscal year, from July to September, production and sales activities moved toward normalisation as lockdowns were lifted in Japan and India, our main markets. However, the outlook for the containment of infections in India remains uncertain, and concerns about a second wave remain in regions across the Northern Hemisphere, including Japan, as winter approaches. The situation is expected to continue requiring close monitoring.」
With lockdown restrictions lifted in Japan and India, and production and sales activities moving toward normal levels, the direct impact on business activities was partially mitigated compared with the first quarter. However, uncertainty over when the pandemic will subside and concerns about a second wave remain, and cumulative results show lower revenue and lower profit, along with ¥15.417 billion in COVID-19-related losses. - FY2021-Q1WorsenedAnnual report
「During the first quarter of the current fiscal year, the spread of COVID-19 affected factory operations in Japan, India, Pakistan, Hungary and other countries where we have manufacturing facilities, as well as sales worldwide, resulting in a substantial year-on-year decline in revenue and profit. Consolidated revenue was ¥425.3 billion, down ¥482.2 billion, or 53.1%, year on year, while operating income was ¥1.3 billion, down ¥61.4 billion, or 97.9%, from the same period of the previous year, representing a substantial decline.」
The impact of COVID-19 became more pronounced in the first quarter as reduced factory operations and sales worldwide. Consolidated revenue fell 53.1% year on year and operating income fell 97.9%; ¥15.4 billion equivalent to fixed costs from factory shutdowns due to lockdowns was also recorded as an extraordinary loss. - FY2020MaterialisedAnnual report
「The spread of COVID-19 reduced operating income by ¥12.8 billion in the fiscal year ended March 2020. Although it may continue to have a significant impact on the business performance and financial condition of the Suzuki Group, the outlook for the scale of the outbreak and when it will subside remains unclear, making it difficult at this time to forecast its impact on business performance.」
The spread of COVID-19 materialised as an impact on factory operations and sales and as a ¥12.8 billion factor reducing operating income, and the Company stated that its future impact would be difficult to forecast.