8 • July 2024 • Powersports Business
FINANCE www . PowersportsBusiness . com
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 .
Hidaka says that FY24 is the final year of its Medium-Term Management Plan . “ 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 ($ 1.38 billion USD ) 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 .
DEALER FINANCIAL SNAPSHOT
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 : 1 . 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 Yamaha ’ s unit sales were also around the same level . In emerging markets , demand grew in India and Brazil , but fell in China and
NORTHWEST -14.2 % Parts Department -6.6 % Service Department -14.1 % Major Units -13.3 % Overall
WEST -14.2 % Parts Department -1.9 % Service Department -10.4 % Major Units -9.8 % Overall
UNITED STATES -14.8 % Parts Department -0.4 % Service Department -8.9 % Major Units -8.4 % Overall
MIDWEST -15.6 % Parts Department -0.2 % Service Department -10.1 % Major Units -9.3 % Overall
SOUTH -17.3 % Parts Department 1.2 % Service Department -7.3 % Major Units -7.0 % Overall
NORTHEAST -10.5 % Parts Department 1.4 % Service Department -6.9 % Major Units -6.3 % Overall
MAY 2024 VS . MAY 2023 According to composite data from more than 1,700 dealers in the U . S . that use the Lightspeed DMS , the average dealer was down 8.4 % in combined revenue in May . Dealers reported the most signifi cant revenue decrease in the parts department , with the average dealership down 14.8 %. The South reported a 17.3 % drop in revenue , followed by the Midwest , reporting a 15.6 % decrease in parts revenue . Every region was down at least 10 % in parts revenue . Dealers were down an average of 0.4 % in the service |
department . The Northeast ( 1.4 % increase ) and the South ( 1.2 % increase ) were the only regions to report revenue growth in service . The Northwest reported the most signifi - cant decrease of 6.6 % in service revenue . Dealers were down 8.9 % in sales , led by the Northwest , down 14.1 %, then the West , down 10.4 %. The Northeast reported the lowest decrease in sales revenue of 6.9 %. Combined , the Northwest was down the most in revenue , reporting a 13.3 % decrease , and the Northeast was down the least in combined revenue , reporting a 6.3 % decrease . |
PARTS SALES Parts sales revenue was up at 564 dealerships and down at 1042 .
SERVICE SALES Service revenue was up at 907 dealerships and down at 897 .
MAJOR UNIT SALES A total of 620 dealerships were up and 1040 were down .
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