Half-yearly financial results from Yamaha highlight its motorcycle brand’s resurgence with steady revenue growth and a massive profitability boost.
In this six-month period to 30 June, Yamaha’s net revenue from motorcycle products rose by 7.6% to £2.68bn, accounting for almost two thirds of entire turnover. Resultant operating profit went stratospheric, leaping by 65.8% to £96m. Success was principally attributed to developed markets with new models like the MT-09 Tracer and latest YZF-R1 reportedly driving the show. North American sales increased by 24% and Europe was up by 14%.
But the company didn’t do too badly in emerging markets either. Thanks to higher-priced bikes selling strongly in Asia Pacific countries such as Vietnam and the Philippines, Yamaha managed to completely offset the slumps currently afflicting Indonesia and Brazil — unlike many competitors.
Power products, predominantly ATVs, also made a positive contribution. Revenue from that division grew by 9.5% to £346m and associated operating profit increased by 20.9% to £21m. The American launch of a new Wolverine recreational side-by-side ATV evidently played a key role in raising those stakes.
Overall group revenue for the first half of 2015 improved by 8.6% to £4.25bn. Operating profit was up by 41.9% to £361m and net profit stacked on 61.7% to £270m. And on the back of muscular performance to date, Yamaha hasn’t changed full-year forecasts. It anticipates revenue of £8.8bn, operating profit of £620m and net earnings of £390m.