Japanese nonfinancial companies’ combined ordinary profits in April-June reached a record high of ¥35,768 billion, marking a 13.2% increase compared to the same period last year, according to the Ministry of Finance. This is the highest level of profits recorded since data became available in April-June 1954.
During the first quarter of fiscal 2024, combined profits continued to rise for the sixth consecutive quarter. Both the manufacturing and nonmanufacturing sectors experienced record-high profits due to factors such as the historic depreciation of the yen and successful efforts to pass on higher costs to consumers.
Manufacturers saw their profits rise by 13% to ¥12,729.4 billion. This growth can be attributed to strong overseas sales of transportation equipment and the weakening yen, which boosted profits when converted into yen terms.
Nonmanufacturers also experienced a significant increase in profits, with a growth rate of 13.3% amounting to ¥23,038.6 billion. Services providers like restaurants benefited from a recovery in customer numbers and the positive impact of new store openings.
these results indicate that Japanese companies are performing well financially and are capitalizing on favorable market conditions both domestically and internationally. The combination of increased sales abroad and cost management strategies has contributed significantly to their success.
It will be interesting to see if this positive trend continues in future quarters as businesses navigate various challenges such as supply chain disruptions caused by global events or changes in consumer behavior due to ongoing uncertainties related to COVID-19 pandemic restrictions.