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Financial

10/08/2018

Yamaha’s struggling European motorcycle business has been largely responsible for taking the shine off its entire group performance in the first half of this year. BDN financial editor Roger Willis reports.

Although global revenue from bikes was 1.2% up at £3.598bn, associated operating profit fell by 7.5% to £218m. Developed markets inflicted an operating loss of £28m, as their combined turnover sank by 8.4% to £919m. Europe was the primary culprit, with sales declining by 8.2% to £547m. North America was 5.3% down at £186m. Japan lost 14.6% on £143m. Oceania (Australia and New Zealand) decreased by 3.2% to £43m.

The emerging world told a much better story. Revenue rose by 5% to £2.679bn and operating profit gained 13.5% to £246m. South-East Asia did particularly well, as turnover put on 15.4% to £1.07bn and unit sales increased by 2.9% to 1.401 million bikes.

However, the impact of losses elsewhere was felt right up to group level. Overall Yamaha revenue grew by 2.8% to £5.943bn, of which the motorcycle contribution represented slightly over 60%. But operating profit was a mere 0.1% up to £574m and net profit was 6.3% lower at £398m.

The company said that it intends to address problems in Europe by "promoting further structural reforms and building a new business model".