In the full-year 2022 performance statement for its motorcycle business, Yamaha relied on blunt simplicity to explain good fortune. Revenue and profit both improved to record levels thanks to the obvious expedient of selling more bikes at much higher prices, while judiciously minimising the impact of insufficient parts procurement. BDN financial editor Roger Willis reports.
Worldwide annual turnover increased by 27.1% to £8.008bn. Asian countries provided the biggest contribution, 25.2% up to £4.859bn. Developed markets and various other regions accounted for the rest, rising by 30.1%. Within that, the European portion rose by 25.7% to £1.178bn. North America put on 34% to £384m. Japanese domestic revenue added 46.3% to £343m. Resultant operating profit grew by a muscular 61.3% to £525m. Operating margin improved to 6.6% from 5.2%.
Yamaha’s global motorcycle unit sales were 5.4% up to 4.774 million versus 2021. However, that total was still 6% below the pre-pandemic 2019 figure of 5.078 million sold. 2022 sales in Asia were 7% higher at 3.826 million. Europe recovered by 5.3% to 199,000. North America added just 1.5% to 68,000 and Japan was 4% down on 95,000. Other regions combined were 5% up to 586,000.
Forecasts for the motorcycle business in 2023 are a mixed bag. Unit sales are predicted to keep on growing by around 9% to 5.233 million. Revenue is expected to rise by about 8% to somewhere slightly north of £8.6bn. But operating profit is set to fall by approximately 20% to £415m, due to major raw materials cost hikes, worsening SG&A expenses and adverse forex repatriation effects.
Those gloomy factors apart, the past year’s wider picture year saw Yamaha as a whole enjoy group revenue 24.1% up to £13.938bn and operating profit 23.4% higher at £1.394bn. (Although motorcycles generate a considerably larger turnover, marine products are a lot more profitable.) This allowed the company to celebrate passing 2000 billion yen revenue and 200 billion yen operating profit marks for the first time ever. Net profit advanced by 12.1% to £1.081bn.
Yen-sterling currency translation at forex rates applicable on 14 February.