Yamaha Motor Co., Ltd. (Tokyo: 7272) announces its consolidated
business results for the first half of fiscal 2024.
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Yamaha Motor Headquarters, Iwata,
Shizuoka, Japan (Photo: Business Wire)
From HIDAKA, Yoshihiro President, Chief Executive
Officer and Representative Director
In the first half of fiscal 2024, we were able to set new
records for revenue and incomes for the second year running. In our
core business of motorcycles, increased sales of premium models in
emerging markets and other factors led to us posting higher
revenues and profits.
In terms of the external business environment, high prices and
interest rates are affecting demand levels, and as anticipations of
interest rate cuts rise in the United States, sharp fluctuations in
foreign exchange rates and other developments have made things
uncertain. Also, while things vary by business segment, we expect
the fierce competitive environment to continue due to product
supply improvements by us as well as our competitors, declining
levels of demand, and other effects. Ocean freight rates are
trending upward while raw material costs are generally in line with
forecasts, excluding the effects of foreign exchange rates.
As for our businesses, we expect the motorcycle business to
continue performing well, but for recreational vehicles and Smart
Power Vehicles, inventory adjustments to lead to prolonged
production cutbacks. In the Marine Products business, the new large
outboard motor models we launched this season continue to receive
ample customer inquiries, but we still expect demand to decline,
mainly in Europe and the United States. We will continue to work
toward inventory optimization, including making production
adjustments that take demand levels and sales conditions into
account. As for the Robotics business, we expect to see a recovery
in demand in the second half of the year.
To strengthen profitability, we will be resolute in controlling
expenses, improving production efficiency, and carrying out our
premium segment strategy while enacting structural improvements for
businesses incurring losses.
Consolidated Business Results
Revenues for the period were 1,348.4 billion yen (an increase of
122.0 billion yen or 10.0% compared with the same period of the
previous fiscal year) and operating income was 154.4 billion yen
(an increase of 12.9 billion yen or 9.1%). Interim net income
attributable to owners of parent was 113.1 billion yen (an increase
of 9.8 billion yen or 9.5%).
For the first half-year consolidated accounting period, the U.S.
dollar traded at 152 yen (a depreciation of 17 yen from the same
period of the previous fiscal year) and the euro at 165 yen (a
depreciation of 19 yen).
In the Company’s core business of motorcycles, Brazil and India
saw higher overall unit sales and higher prices per unit, which
increased revenues. 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.
*From 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 896.1 billion yen (an increase of 98.6 billion yen
or 12.4% compared with the same period of the previous fiscal year)
and operating income was 90.7 billion yen (an increase of 22.8
billion yen or 33.6%).
For the motorcycle business, unit sales rose in developed
markets like Europe and the United States, resulting in higher
numbers than last year. Demand in emerging markets—primarily
Brazil, India, and Indonesia—went up and accordingly increased the
unit sales recorded for the entire emerging market motorcycle
business. Revenues for the motorcycle business went up thanks to
the higher unit sales in Brazil and India as well as higher prices
per unit. 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 has fallen below last year’s while unit sales remain roughly
the same, but a worsening model mix resulted in lower sales. In
addition to the higher marketing, promotional, and manufacturing
expenses accompanying the intensifying competition left the
business with lower profits.
For the Smart Power Vehicles business, i.e., electric
wheelchairs, electrically power-assisted bicycles (eBikes) and
their drive units (e-Kits), unit sales of eBikes in Japan surpassed
last year’s numbers. However, in Europe, the main market for Yamaha
Motor e-Kits, market inventory adjustments have remained ongoing
and this led to a decline in unit sales and lower sales overall. In
terms of operating income, the lower unit sales and increase in
sales promotion expenses left the SPV business posting lower
profits.
Marine Products Business
Revenues were 297.7 billion yen (a decrease of 1.3 billion yen
or 0.4% compared with the same period of the previous fiscal year)
and operating income was 53.2 billion yen (a decrease of 12.6
billion yen or 19.2%).
Outboard motor demand in Central and South America continued to
be strong, but in North America and Europe, rising prices and
interest rates led to a decline in demand. However, demand for
large horsepower outboards in North America remained stable. Unit
sales of new outboard models were positive, but sales were lower
for the outboard business overall. For personal watercraft, unease
about rising interest rates made customers hesitate to purchase and
demand decreased, but unit sales increased thanks to improvements
addressing last year’s lack of parts and supply chain disruptions,
which had forced the Company to place limits on product supply. As
a result, sales and profits fell for the Marine Products business
overall. Also, Yamaha Motor’s half-year consolidated business
results include the performance recorded by German electric marine
propulsion manufacturer Torqeedo GmbH during its second quarter
consolidated accounting period (April–June 2024).
Robotics Business
Revenues were 45.9 billion yen (a decrease of 0.4 billion yen or
0.8% compared with the same period of the previous fiscal year)
with an operating loss of 0.4 billion yen (compared to an operating
income of 5 billion yen).
In the surface mounter market, lower demand for capital
investment in Europe accordingly brought down unit sales. With
industrial robots, demand remained stagnant in China and sales
decreased. Also, higher demand for generative AI applications and
advanced packaging yielded higher sales of Yamaha semiconductor
back-end process manufacturing equipment. As a result of all these
developments, the Robotics business as a whole took in lower sales
and its operating income for the period also fell.
Financial Services Business
Revenues were 55.9 billion yen (an increase of 17.4 billion yen
or 45.3% compared with the same period of the previous fiscal year)
and operating income was 10.8 billion yen (an increase of 4.2
billion yen or 63.2%).
As financial receivables increased, we 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 52.9 billion yen (an increase of 7.7 billion yen
or 17.1% compared with the same period of the previous fiscal year)
and operating income was 3.6 billion yen (compared to an operating
income of 0.6 billion yen).
Higher demand for golf cars in North America was behind the rise
in unit sales and resulting greater revenue brought the business
both increased sales and 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 (including the assumed foreign exchange
rates):
Revenue: 2,600.0 billion yen Operating Income: 260.0 billion yen
Net Income: 175.0 billion yen
Basic Policy Concerning Profit Distribution and Dividends for
the Current Fiscal Year
For shareholder returns, the Company’s basic policy is to
emphasize making consistent and ongoing dividend payments while
taking into consideration the outlook for business performance and
investments for future growth, distributing returns to shareholders
in a flexible way based on the scale of our cash flows with the
total payout ratio set at the 40% range for the cumulative total of
the Medium-Term Management Plan’s three-year period.
Regarding dividends for the period, based on there being no
changes to the original forecast consolidated business results for
the fiscal year ending December 31, 2024, the Company resolved to
keep the forecast annual dividend at 50 yen per share and the
interim dividend at 25 yen per share.
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Yayoi Tokutome Corporate Communication Division Global PR Team
Yamaha Motor Co., Ltd. TEL: +81(0)538-32-1145
ymc_pr@yamaha-motor.co.jp