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YAMAHA: PROFITS DECLINE

As Yamaha had forecast, its motorcycle business model mix deteriorated in the first quarter of 2022, due to a litany of output constraints affecting premium products. So while sales revenue grew, associated profit decreased. BDN financial editor Roger Willis reports.

Turnover from the company’s Land Mobility division — which also includes off-road and other niche vehicles — was 8.6% up to £1.959bn. But operating profit plunged by 38.7% to £75.7m. The motorcycle operating margin declined from 6.9% to 4.5%.

Revenue specifically attributable to motorcycles increased by 8.9% to £1.724bn. And that amount was usefully 12% up on pre-pandemic Q1 in 2019. Asian markets were the biggest contributor, rising by 2.3% to £1.059bn. Latin America and other emerging regions put on 26.7% to £229.7m. Developed markets were 18.6% up to £435.1m. More than half of that came from Europe, a 21.6% increase to £251.9m.

However, Yamaha’s global sales volume fell by 8.1% to 1.117 million bikes. Asia sank by 11.8% to 885,000 and North America was 26.3% down at just 14,000. But European sales improved by 10.9% to 51,000 and other regions added 15.3% to 143,000. Japan’s domestic market flatlined on 23,000.

For the rest of this year, Yamaha expects its difficult operating environment to be unabated, with an inflationary trend driven by rising raw materials, parts and logistics costs. Supply-chain disruption due to Covid lockdowns in China will also continue. On a brighter note, positive effects from the depreciating yen will extend into the second quarter.

Yen-sterling currency translation at forex rates applicable on 17 May.   

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