With semiconductor shortages a thing of the past, Yamaha’s motorcycle business was able to ramp up global shipments and sales in the first half of 2023. Substantially higher profits duly followed, boosted by passing on price inflation to customers and mitigating input cost pressures. The best result is yet to come, though, thanks to muscular upwards revision of full-year forecasts. BDN financial editor Roger Willis reports.
Total worldwide revenue from Yamaha-branded motorcycles in this six-month period climbed by 16.5% to £3.861bn. Asian turnover led the way, 14.4% up to £2.254bn. Developed markets grew by 15.8% to £1.038bn. Latin America and other emerging markets added 26.8% to £569m. Associated operating profit went ballistic, flaunting 71.7% growth to £339m. Operating margin improved from 6% to 8.8%.
Global unit sales put on 5% to 2.462 million bikes. Asian countries were responsible for 1.961 million of them, a 5.1% overall rise. Star performer was apparently Indonesia, where demand rose by 36%. India and the Philippines achieved respective 8% and 7% gains. Other mainly emerging markets were 3.1% up to 297,000.
Among major players in the developed world, European sales volume increased by 12% to 121,000, with its related revenue contribution 21.8% higher at £653m. North American volume grew by 25% to 45,000. Related revenue was 35.8% up to £224m. Only its Japanese domestic market spoiled Yamaha’s party, as units sales volume on home turf dropped by 20.8% to 38,000 and revenue sank by 20.9% to £122m.
Based on such a generally upbeat half-way point performance, revised financial estimates were obviously on the cards. Yamaha’s original motorcycle business 2023 full-year forecast featured total revenue 7.7% higher at £7.607bn. But operating profit had been burdened with a gloomy prediction of 20.9% decline to just £366m. Those figures have now been torn up and replaced.
Instead, annual revenue from bikes is set to rise by 13.6% to £8.034bn. And the operating profit target has been reconfigured as 21.6% up to £564m — potential all-time record profitability input for the sector, equating to 41.2% of forecast group operating income.
Yen-Sterling currency translation at forex rates applicable on 9 August.