Having had plenty to celebrate in every previous quarterly stage of its advance through 2024, Yamaha’s motorcycle business once again fell at the final full-year profitability hurdle.
Annual revenue from motorcycles finished 11.2% up at £8.22bn. Developed markets delivered an 11.8% rise to £2.089bn. Asia put on 4.2% at £4.603bn. Latin America and other regions added 37.7% to £1.528bn. Particular credit was attributed to higher shipments in the developed markets of North America and Europe, while shipments in emerging markets rose primarily in Brazil and India.
Then pathetically weak operating profit spoilt the party, improving by a mere 0.8% to £661.8m. According to the official excuse: “Operating income was on par with the previous year due to personnel costs and higher SG&A expenses from provisions for product warranties and other payments.”
Full-year unit sales grew by 2.8% to 4.961 million. Asian volume was the biggest slice but marginally 0.5% down to 3.863 million. European sales rose by 8.1% to 226,000 units, eliciting a revenue contribution which was 13.8% up to £1.288bn. North American volume grew by 7.9% to 82,000 units, with associated revenue 17.4% up to £466.2m. Sales volume in other regions surged by 23.2% to 718,000 units. Japanese domestic sales were negative, falling by 5.3% to 72,000 units. Associated revenue dropped by 4.9% to £232.8m.
Yamaha’s motorcycle business revenue forecast for 2025 predicts an overall annual rise of 3.9% to £8.544bn. Developed markets turnover should be 2.2% up to £2.134bn. Asia is billed for a 5.7% improvement to £4.865bn. But Latin America and other regions are likely to approximately flatline. Wishful thinking has operating profit boasting 3.6% growth to £685.4m – although it may trend similarly to the past year due to rising raw material prices.
In its forecast commentary, Yamaha expects unit shipments in Europe to continue growing. And in emerging markets, demand in India, the Philippines and Indonesia will increase. The latter will also apparently benefit from a recently launched Aerox premium scooter model taking the lead in unit sales.
Yen-sterling currency translation at forex rates applicable on 12 February