Thank you for your participation in our financial result announcement while you're having a busy schedule. While the U.S. tariff policy, which was a significant headwind this fiscal year, is beginning to stabilize, the global business environment remains uncertain. Price competition continues to be severe due to the continued aggressive stance to export by Chinese manufacturers. Furthermore, geopolitical and macroeconomic uncertainties remain high, including U.S.-China tensions, policy friction over green products, and a concern about a global economic slowdown. Against this challenging external environment, our results for third quarter year-to-date in FY 2025 showed a worldwide decrease in both net sales and profit. However, thanks to the success of our initiatives, including the launch of new models, our earnings have bottomed out and are showing a gradual recovery trend. Net sales were JPY 1,976.5 billion, decreasing 1% worldwide.
Operating profit decreased 70% worldwide to JPY 31.6 billion, and the OP margin decreased 3.71% worldwide to 1.6%. Ordinary profit was JPY 32.6 billion. While we recorded our net loss of JPY 9.2 billion for the first half, mainly due to factors recorded in the second quarter, such as devaluation loss in the U.S. environmental credit, the following changes in the U.S. environmental regulation, and losses associated with the withdrawal from a joint venture engine plant in China, the net loss for the third quarter YTD in FY 2025 improved to JPY 4.5 billion. Sales volume stood at 589,000, down by 6% worldwide. Please turn to page 4. In this slide, you can see the factors behind the worldwide changes in operating profit for third quarter year-to-date in FY20 25.
In terms of volume mix, the impact of decreased wholesale volume due to the discontinuation of multiple models in North America, Australia, New Zealand, and other regions was offset by our net revenue strategies, resulting in an overall increase of JPY 11.5 billion in operating profit. Sales expenses lowered operating profit by JPY 15.4 billion overall, as an increase in incentives to address intensifying market competition was partially offset by a reduction in advertising expenses. Regarding procurement and shipping costs, the negative impact from higher material costs due to inflation and increased factory expenses for new model launches was largely offset by our procurement and cost reduction activities and improvements in shipping costs. Additionally, R&D expenses showed a favorable impact, partly due to timing differences in spending. FX had an unfavorable impact of JPY 36.1 billion, mainly due to yen appreciation against currencies such as the U.S.
dollar and Australian dollars, and yen depreciation against Thai baht on a worldwide basis. The U.S. tariff payments were a negative factor of JPY 37.3 billion. Please turn to page 5. In this slide, you can see the factors behind the worldwide changes in operating profit for third quarter in FY 2025. Overall, despite the impact of the U.S. tariff, we achieved a slight worldwide increase in profit. Regarding volume mix in price and others, although there was an impact from the discontinuation of some models, contributions from the emerging effects of new models and our price improvement initiatives in various countries led to a favorable impact of JPY 10.5 billion overall. Sales expenses reduced operating profit by JPY 4.5 billion overall. While we effectively increased incentive spending in North America as well as in ASEAN, Europe, and other regions, this was partially offset by a reduction in advertising expenses.
Procurement and shipping costs had a favorable impact of JPY 1 billion, mainly because the negative impact from higher material costs due to inflation was offset by our procurement cost reduction activities. R&D expenses had a favorable impact of JPY 2.3 billion, while other items, including FX impact on the supplier procurement, had an unfavorable impact of JPY 1.6 billion. FX had a favorable impact of JPY 2.3 billion as the yen trended weaker worldwide against major currencies such as the U.S. dollar. Please turn to page 6. I would like to explain our retail sales performance. Global retail sales decreased by 6% worldwide. This was primarily due to a decline in retail sales volume in regions other than Japan, Latin America, and the Middle East, and Africa. Next, I will explain the situation by region. Please turn to page 7. First, I will explain the ASEAN and Oceania regions.
Total demand in major ASEAN countries weakened in Indonesia, Philippines, and Vietnam due to factors such as natural disasters, while in Thailand it increased due to last-minute demand ahead of the expiration of the EV 3.0 incentive program. Under these circumstances, our unit sales and market share declined in Thailand, affected by intense price competition before the program's expiration, and also fell slightly in the Philippines due to credit tightening for small cars. As a result, although the situation for the third quarter YTD remained challenging, in the third quarter alone, the effects of our new models materialized in Indonesia and Vietnam, and our sales in ASEAN as a whole, sales as a whole, turned positive worldwide. A recovery trend is now visible.
In Oceania, while ultimate demand in Australia saw only a slight increase worldwide, New Zealand was in a recovery trend against a backdrop of lower interest rates and slowing inflation. In New Zealand, our sales measures proved successful, and the sales surpassed the previous year's level. However, in Australia, we couldn't fully offset the impact of discontinued models, resulting in a decrease. This led to a decline in the sales volume for the region as a whole. Please turn to page 8. Next is Latin America, the Middle East, and Africa. In Latin America, although some markets continue to face deterioration due to intensifying price competition, our sales have remained strong overall, increasing by 14% worldwide, supported by solid sales of the new L200 Triton and the new Outlander Sport. Going forward, we aim for further sales expansion with the launch of the Destinator.
In the Middle East, automobile demand in major countries has generally remained robust. While our sales have been partially impacted by pricing competition, they have remained stable overall, maintaining the same level as the previous year. We'll continue to strengthen our focus on the core SUV segment and further enhance collaboration with distributors in each country for the launch of the Destinator. Please turn to page 9. In Japan, North America, and Europe. In Japan, while total demand was generally flat year over year, we struggled somewhat through the third quarter, partly due to the impact of model changeovers, but the Delica Mini launched in October supported our sales and brought them back to the previous year's level. In the fourth quarter, in addition to solid sales of Delica Mini deliveries of the new Delica D:5 , which has received orders significantly exceeding our plan, will begin in earnest.
Driven by the effects of these new models, we will further accelerate our sales expansion. In the U.S. market, total demand saw a slight increase. This was driven by pull-forward purchases in anticipation of price hikes from additional tariffs, in addition to the confusion surrounding the end of EV tax credits. On the other hand, our sales fell below the previous year's level. This was due to factors including discontinued models and our cautious approach to sales activities in response to the additional tariffs. We will continue to promote the achievement of our plans through flexible responses that capture changes in the market environment. In Europe, while total demand saw a slight increase year-over-year, our sales volume decreased. This was affected by model changeovers in key countries, and we were unable to fully recover with our new models.
Next, Mr. Kato will explain the full-year outlook for FY2025. Kato-san, please.
Please turn to page 11. Our forecast for FY2025 is as shown in this slide. Amid a challenging external environment, we have been implementing multi-faceted measures to rebuild our business. Recently, an increase in sales volume driven by the launch of new models has begun to materialize, particularly since last December, and we are now moving onto a recovery track. However, in some regions, we have yet to see signs of improvement in the sales environment. Based on the current business environment and recent performance, we have decided to slightly revise our forecasts for retail and wholesale volume and net sales to align them with the actual situation. Nevertheless, we will maintain the full-year profit plan as we believe it is achievable through our ongoing cost reduction efforts and in light of the current foreign exchange situation.
Additionally, the dividend per share will be maintained at JPY 10, in line with the initial plan. Please turn to page 12. This slide explains the factors behind the year-over-year change in our operating profit forecast. Please note that in this presentation, the impact of U.S. tariffs is shown as the direct payment amount only, and other items have been revised accordingly. First, in terms of volume, mix, and price, etc., we see a total improvement of JPY 38.9 billion, driven by the effect of new models and our continued price improvement efforts. Next are sales expenses. We are increasing sales incentives in Australia, New Zealand, North America, and ASEAN to address intensified competition, as well as in Europe, in line with our plans.
On the other hand, while we are controlling advertising expenses globally, which will partially offset the increase in sales incentives, we anticipate a negative factor of JPY 25.3 billion. Regarding procurement costs and shipping costs, we expect to partially absorb cost increases from inflation and enhanced product competitiveness through material cost reduction activities and improved expense efficiency at our plants. However, overall, we anticipate a negative cost impact of JPY 13.7 billion. Other new expenses are expected to show a year-over-year improvement, partly due to more efficient expense management. Other items are expected to be a positive factor of JPY 7.4 billion due to improvements in areas such as after-sales parts, labor costs, and other general expenses. Regarding FX, due to the depreciation of the U.S. and Australian dollars, in addition to the appreciation of Thai baht, our custom currency, this is a negative factor of JPY 37.3 billion.
The amount of U.S. tariff payments is estimated to be JPY 45.2 billion for the full year. Please turn to page 13. We have revised our full-year retail sales volume forecast, as shown in the slide, in light of current demand trends and sales results to date. Primarily, we have lowered our retail sales volume forecasts in Australia, New Zealand, North America, and Europe. Although the sales environment remains challenging, our sales momentum is steadily strengthening on a recovery trend driven by the full-scale effect of new models. Going forward, we will continue to make steady efforts to solidify this upward trend. Next, we'd like to present our recent business highlights. Please turn to page 15. The Destinator was first launched in Indonesia last July, followed by its rollout in the Philippines in November and Vietnam in December.
In all these countries, orders have exceeded our plans, indicating a very strong start, especially in Vietnam, where they are more than three times our initial plan. With strong support from many customers, we have been able to make a very good start in ASEAN. Going forward, we will expand its rollout to other ASEAN countries, in addition to South Asia, Latin America, Middle East, and Africa, ultimately planning to launch it in about 70 countries. We will strive to expand sales in each country while continuing to thoroughly meet our customers' expectations. Please turn to page 16. In the Japan market, we have successively updated and launched Delica Mini and Delica D:5 as the new Delica series. Since their launch, both models have been very well received by a great number of customers, marking a very good start.
This Delica series consists of models that have been thoroughly refined to embody the richness and uniqueness of our Mitsubishi Motors-ness. We believe that these distinctive products will provide a strong boost to our future sales expansion and market share growth. Going forward, we will continue to further enhance our presence in the domestic market by delivering unique value to our customers that cannot be found elsewhere. Please turn to page 17. This graph shows our sales performance in ASEAN. The sales environment in ASEAN remains challenging, and the outlook continues to be uncertain. However, driven by the launch of new models, the situation has steadily bottomed out, and we are beginning to see the signs of recovery.
Particularly in Vietnam, a strong recovery is reflected in the numbers, as single-month sales in December reached a record high, and we achieved number one market share in the ICE category for the first time. Going forward, we anticipate that the competitive environment will remain tough due to an increase in new entrants, including Chinese OEMs. Amid this environment, rather than focusing on price competition, we will deliver the unique value of Mitsubishi Motors-ness by strengthening our attractive product lineup to meet customer expectations and consistently providing meticulous services. Through these efforts, we will continue to steadily enhance our presence in ASEAN. This concludes my explanation. This fiscal year, the business environment has faced extremely strong headwinds, including U.S. tariffs. This was compounded by the discontinuation of sales for some models, and as a result, our business performance has remained challenging.
However, the effects of new models launched in the second half last year began to materialize noticeably from December, showing the signs of recovery, and we believe we are now moving past the bottom of our performance. We will work to solidify this trend, first by securing profitability to close out this fiscal year on a strong note, and then connect this to our transformation and growth from the next fiscal year onwards. Thank you for your attention.