Toyota Financial Services (South Africa) Limited, the leading provider of financial solutions for Toyota customers in South Africa, has announced a trading update regarding its financial performance for the fiscal year ended March 31, 2023 (FY2023). The company anticipates a significant decline in its operating profit before tax, attributing the decrease to various factors impacting its asset portfolio.
Toyota Financial Services (BITOY), known for its exceptional financial services tailored to Toyota customers, projects a decline of more than 40% in operating profit before tax for FY2023 compared to the previous fiscal year. The company expects its operating profit before tax to range between R530 million and R550 million, significantly down from the R987 million achieved in FY2022.
The decrease in operating profit is primarily attributed to the company’s expanding asset portfolio, resulting in an increase in the IFRS 9 related retail provisions. In contrast, the previous fiscal year saw the release of Covid-specific retail provisions, which had a positive impact on the company’s financial performance. The detailed breakdown and analysis of these provisions will be unveiled with the release of the audited consolidated and separate annual financial statements for FY2023.
It is important to note that the financial information provided in this trading update has not undergone a review or report by the company’s external auditors. The audited financial statements for FY2023 are scheduled to be released on or about June 21, 2023, offering a comprehensive view of Toyota Financial Services’ financial position.
Despite the challenges faced during FY2023, Toyota Financial Services remains committed to its mission of providing innovative and reliable financial services to Toyota customers across South Africa. The company aims to adapt to market conditions and implement strategic measures to regain momentum and continue its growth trajectory.
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