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Yamaha shares fiscal 2024 Q1 results

Yamaha Motor has shared its consolidated business results for the first three months of fiscal 2024.

Yamaha’s President, CEO and Representative Director Yoshihiro Hidaka shares, “In contrast to last year when outdoor recreation was booming, we had strong demand across almost all our businesses, and replenishing inventory was a priority, the business environment has heavily swung in the opposite direction and the first quarter of fiscal 2024 has been marked by concerns of an economic recession and the return of intense competition as market inventories have increased. Amidst these developments, our core business of motorcycles led the way, securing the company higher revenue and profits.

“Fiscal 2024 is the final year of our Medium-Term Management Plan and we expect to record higher revenue and operating income for the fourth year in a row,” he continues. “We also expect to considerably surpass our final 2024 target of over 2,200 billion yen in revenue. Additionally, while we have successfully cleared our profitability and efficiency targets over the last two years, the winds are now turned against us and I believe this year will test if we are able to maintain those levels.

“We will continue to keep ‘transformation’ and ‘speed’ in mind as priority themes while adopting a more proactive stance, i.e., taking greater initiative and acting independently, and work together as one to reach our next goal of 3,000 billion yen in revenue.”

Consolidated business results

Revenues for the period were 642.1 billion yen (an increase of 35.6 billion yen or 5.9% compared with the same period of the previous fiscal year) and operating income was 78.0 billion yen (an increase of 2.1 billion yen or 2.7%). Net income attributable to owners of parent was 56.0 billion yen (an increase of 6.3 billion yen or 12.7%).

For this first quarter consolidated accounting period, the U.S. dollar traded at 149 yen (a depreciation of 17 yen from the same period of the previous fiscal year) and the euro at 161 yen (a depreciation of 19 yen).

In the company’s core business of motorcycles, the continued strong demand in India and Brazil saw higher overall unit sales, and with the higher prices per unit in these markets, revenues grew. For operating income, the effects of higher revenue in the motorcycle business and cost-cutting efforts were compounded by the positives of a weaker yen, and this led to higher profits for the period.

Also, from the first quarter of this fiscal year, the Yamaha Motor group has switched from Japanese Generally Accepted Accounting Principles (J-GAAP) to International Financial Reporting Standards (IFRS), and as such, figures from fiscal 2023 have been converted to IFRS standards for comparison and analysis.

Results by business segment

Land mobility business

Revenues were 430.6 billion yen (an increase of 28.7 billion yen or 7.1% compared with the same period of the previous fiscal year) and operating income was 50.0 billion yen (an increase of 13.6 billion yen or 37.3%).

For the motorcycle business, demand in developed markets was slightly down from last year and our unit sales were also around the same level. In emerging markets, demand grew in India and Brazil, but fell in China and other countries due to worsening economies, resulting in slightly lower unit sales in emerging markets overall. Unit sales across the entire business declined slightly as well, but the higher unit sales recorded in India and Brazil as well as higher prices per unit led to higher overall revenue. For operating income, in addition to the effects of higher revenues, improved supply of premium segment models in emerging markets, cost reductions, and the benefits of a weaker yen brought in higher profits.

With recreational vehicles (all-terrain vehicles and ROVs), demand remained at similar levels to last year, but shipments declined, as have revenues. Furthermore, the lower number of units sold and the higher SG&A expenses accompanying the intensifying level of competition led the business to record lower profits.

For the Smart Power Vehicles business, i.e., electric wheelchairs, electrically power-assisted bicycles (eBikes) and their drive units (e-Kits), market inventory adjustments have remained ongoing in the industry’s main market of Europe and the company is carrying on with production adjustments. In terms of revenues and operating income, eBike and e-Kit unit sales fell and the business recorded lower sales and profits overall.


Marine products business

Revenues were 141.9 billion yen (a decrease of 3.6 billion yen or 2.5% compared with the same period of the previous fiscal year) and operating income was 25.5 billion yen (a decrease of 11.5 billion yen or 31.0%).

In China, Brazil and other emerging markets, demand continued to be strong in the commercial fishing and tourism markets. Meanwhile, in North America and Europe, concerns of an economic recession led small and midrange outboard motor demand to decrease, but demand for large horsepower outboard motors remained stable. In terms of sales, numbers fell in developed markets and remained about the same in emerging markets and this resulted in lower sales for the outboard business overall. For personal watercraft, unease about rising interest rates made customers hesitate to purchase and demand decreased. On the other hand, there were heavy inquiries for Yamaha products in the space and unit sales rose. Sales and profits fell for the Marine Products business overall.

Robotics business

Revenues were 19.2 billion yen (a decrease of 0.6 billion yen or 3.3% compared with the same period of the previous fiscal year) and an operating loss of 3.7 billion yen (down from an operating loss of 4.0 billion yen).

In the surface mounter market, there was no clear change in the sluggish market situation in China and concerns of an economic recession drove down demand in Europe. The company’s sales in Asia increased, but sales of premium-priced products underperformed and this negatively impacted the model mix. With industrial robots, demand remained stagnant in China and sales decreased. On the other hand, higher demand for generative AI applications and advanced packaging yielded higher sales of Yamaha semiconductor manufacturing equipment. As a result, the Robotics business as a whole posted lower sales and profits.

Financial services business

Revenues were 269.0 billion yen (an increase of 9.0 billion yen or 50.4% compared with the same period of the previous fiscal year) and operating income was 6.1 billion yen (an increase of 3.6 billion yen or 142.4%).

As financial receivables increased in step with the rise in unit sales that continued until last fiscal year, the company made progress in passing procurement interest rates on to customers and this pushed revenues up. As for operating income, in addition to higher income from interest payments, the appraised losses derived from interest rate swaps last fiscal year were converted to appraisal gains this fiscal year. This upped profits for the period.

Other products business

Revenues were 23.5 billion yen (an increase of 2.2 billion yen or 10.2% compared with the same period of the previous fiscal year) and operating income was 0.1 billion yen (a decrease of 0.4 billion yen or 73.7%).

Higher demand for golf cars in North America drove unit sales up and the business took in higher sales, but higher fixed expenses in the business’ other product segments and other factors led to lower profits.

Forecast of consolidated business results

Regarding the forecast consolidated business results for the fiscal year ending December 31, 2024, no changes have been made to the forecast made on February 14 when announcing the company’s fiscal 2023 results:

Revenue: 2,600.0 billion yen
Operating Income: 260.0 billion yen
Net Income: 175.0 billion yen

No changes were made to the forecast exchange rates either, and the above figures are based on the U.S. dollar trading at 140 yen during the fiscal year (an appreciation of 1 yen from FY2023) and the euro at 150 yen (an appreciation of 2 yen).

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