Toyota NZ’s profits rise to $88.1m

Toyota New Zealand has announced its after-tax profit came in at $88.1 million for the year to the end of March 2024, an increase of 4.8 per cent from $84.1m in the prior period.

Other highlights from the company’s annual report show its total revenue grew 14 per cent year-on-year from $1.6 billion to $1.8b.

Its assets increased seven per cent from $643.9m to $690.5m over the same time frame, with cash and cash equivalents up 39 per cent from $103.2m to $144m.

The report, published on the Companies Office website on August 14, also notes the total paid out by Toyota NZ in wages and salaries increased 6.1 per cent from $31.1m to $33m.

In a review of operations, the board notes the profit increase came despite the overall new-vehicle market’s 149,005 registrations in 2023 being 11 per cent lower than in 2022.

“The timing of new vehicle wholesales was severely affected during the year due to changes in the clean car discount (CCD) in July 2023 and then again when the CCD was repealed in December 2023,” it says.

“[However,] Toyota’s various business sectors continued to perform strongly with the new vehicle division securing a 36th consecutive year of market leadership at 22.6 per cent, and the business as a whole securing record sales.”

The board adds that it expects the clean car standard, which came into effect on January 1, 2023, will have significant impacts on the automotive industry over the next few years as manufacturers respond to the “strict emission targets”. 

“Toyota NZ is well placed to address the short-term impact to our business operations whilst studies on the long-term impact is under way.”