Sony posts jump in annual revenues but supply chain issues persist

Sony Group Corporation reported a jump in full-year revenues on Tuesday, but warned it may need to revise down sales forecasts for the current year if supply chain issues persist.

The Japanese multinational said annual sales rose 10% in 2021 to ¥9.9trn following a bumper fourth quarter, while operating income increased 26% to ¥1.2trn.

Pre-tax income was ahead 12% at ¥1.1bn, although net income declined 14% to ¥882.2bn.

Sony said group revenues benefited from "significant" increases in three divisions: pictures, electronics products and solutions, and music. The company was also boosted by strong computer games sales, as well as the success of Spider-Man: No Way Home - the third-highest grossing film ever in the US - and releases from some of its most popular artists, including Adele, Doja Cat and Harry Styles.

Looking to the current year, Sony said it expected to sell 18m PlayStation 5 consoles. That was down on earlier guidance for 22.6m, however, and Sony cautioned it may need to be revised again if Covid-19 infections spread in China and rolling lockdowns make it difficult to secure components.

Hiroki Totoki, chief financial officer, told reporters: "What I can say now is that we can procure enough components for 18m units." Last year Sony sold 11.5m units.

Group sales are expected to rise 15% in the current year to ¥11.4trn, boosted by a strong performance in the games unit, but operating income is forecast to decline 4% to ¥1.16bn, as income in pictures eases year-on-year.