May 20, 2022: Japan-based batteries giant GS Yuasa said on May 12 that increased battery sales enabled the firm to post a near 12% rise in revenues for fiscal 2021.
Consolidated net sales hit a total of just over ¥432 billion (about $3.4 billion) in the year ended March 31, an increase of nearly ¥46 billion over the previous year, mainly driven by sales of automotive lithium ion batteries and increased sales of lead batteries in the automotive batteries business overseas, plus the exchange rate benefit from a weaker yen, the company said.
Operating profit amounted to ¥22.7 billion, down 8.6%, which the company said was mainly due to the impact of higher raw material prices.
Sales of batteries for new cars fell as production of those vehicles fell owing to supply chain shortages including semiconductors, GS Yuasa said.
But sales of replacement batteries were strong because of an “active” used cars market in the face of shortages of new vehicle supplies.
The company said its next set of results could be better still, with it expecting to report record-high net sales of ¥520 billion in consolidated operating results to be issued at the end of March 2023 — and a record high operating profit of ¥28 billion.
However, the company warned the outlook for the next fiscal year was uncertain in view of “escalating geopolitical risk, chaotic conditions in the supply chain and the continuation of the pandemic”.
On March 23, GS Yuasa broke ground at the site of a new HQ and distribution centre in the UK, which will stock batteries and accessories to service all of the company’s markets including automotive and industrial applications.