Panasonic's Q3 net profit reached a record high of 288 billion yen

Panasonic Group released its financial report for the third quarter of 2023, with net profit reaching a historic high of 288 billion yen, an increase of 169% year-on-year. This is thanks to the huge subsidies it has received in its electric vehicle business in the United States, which also highlights the company's increasing dependence on North American customers such as Tesla.

Although Panasonic's net profit increased by 169%, analysts warn that the Japanese company is not as fast as its competitors in investing and establishing partnerships overseas.

Panasonic's financial report shows that its consumer electronics and factory automation equipment business in China has slowed down, thanks in part to the 27.6 billion yen subsidy provided by the US federal government in the second quarter. In addition, the growth in demand for automotive components and aircraft equipment has also driven profit growth.

Panasonic shares government subsidies with Tesla in the United States, which it expects to bring its annual net profit to 110 billion yen, a 73% increase in net profit to 460 billion yen, and is expected to reach a new historical high.

However, Panasonic has lowered its sales and revenue expectations, predicting a 38.6% increase in annual revenue to 400 billion yen, compared to its previous forecast of 49%. The reason for this change is China's weak demand for consumer electronics and factory automation equipment.

Currently, Panasonic has prioritized the development of electric vehicle batteries and plans to quadruple its global production capacity by 2031. At present, Panasonic Energy, the battery business unit of Panasonic, accounts for 12% of Panasonic Group's sales. However, Japan Securities expects that Panasonic Energy will be credited with a 60% increase in profit margin over the next three years.