Financial Information : Latest Financial Results

Latest Financial Results

Feb 16, 2023 Announcement

The Group has been working based on its Mid Term Business Plan (2021-2023), released in February 2021, with the aim of accomplishing its vision of “continuing to provide social value and customer value as a sustainable solutions company toward 2050” under its mission of “Serving Society with Superior Quality” of the Bridgestone Essence. Guided by this mission and vision, we have set the “Bridgestone E8 Commitment” as the focus and vector of our corporate activities, and we are moving forward along the path of the “2030 Long-Term Aspiration,” which depicts the vision we want to achieve in 2031, the 100th anniversary of our founding.

In the operating environment surrounding the Group during fiscal 2022, while restrictions on economic activity due to COVID-19 have been relaxed in many countries, raw material prices have skyrocketed and supply chains have been in turmoil due to the prolonged situation in Ukraine and the lockdowns in China, and accelerating inflation has heightened uncertainty about the outlook for the global economy. With regard to replacement tires, the economic slowdown, mainly in the US and Europe, gradually materialized, and tire demand slowed significantly in the fourth quarter. On the other hand, demand for passenger car and light truck tires remained relatively strong in areas such as high-rim diameter tires (18 inches or more) and premium brands for truck and bus tires in North America. With regard to new vehicle tires, in the first half of the current fiscal year, demand continued to decline due to the impact of reduced vehicle production caused by semiconductor shortages. In the second half, however, as the production of new vehicles started to recover, the sluggish demand showed signs of recovery. Moreover, in terms of costs, in addition to the sharp rise in crude oil prices reflecting geopolitical risks, persistently surging rates for ocean freight, energy costs, and labor costs put pressure on the Group’s profitability.

In this business environment, the Group worked to respond quickly to the unprecedented sharp rise in raw material prices and high inflation. In addition to further strengthening “strategic price management” and “premium business strategy” in each region, we responded flexibly to fluctuations in tire demand through flexible supply management based on our global production system, which is one of the Group’s strengths, and worked to ensure profitability and expand sales at the same time.

As a result, the Group’s revenue in fiscal 2022 were ¥4,110.1 billion, a year-on-year increase of 27%; adjusted operating profit was ¥482.6 billion, a year-on-year increase of 22%; operating profit was ¥441.3 billion, a year-on-year increase of 17%; profit before tax was ¥423.5 billion, a year-on-year increase of 12%; and profit attributable to owners of parent was ¥300.4 billion, a year-on-year decrease of 24%.

The decrease in profit attributable to owners of parent compared to the previous fiscal year is due to the recording of a gain on the sale of the US building materials business in the previous fiscal year.

(Yen in billions)

  2021 Results 2022 Results vs. PY (%)
Revenue 3,246.1 4,110.1 +27
Adjusted Operating Profit
Profit Attributable
to Owners of Parent
394.0 300.4 (24)
 - Continuing Operations 307.9 305.5 (1)
 - Discontinued Operations 86.2 (5.1) -
ROIC 9.0% 9.4% +0.4pp
ROE 12.9% 10.9% (2.0)pp

* Note that revenue, adjusted operating profit, ROIC and ROE show figures for continuing operations and exclude revenue and expenses of the discontinued operations.

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