Yamaha’s motorcycle business held up remarkably well in the first half of 2022. But an erratic model mix meant increased turnover was sullied by reduced profitability. BDN financial editor Roger Willis reports.
Total revenue climbed by 16.7% to £3.716bn. However, global wholesale volume flatlined, 0.3% down to 2.306 million bikes. And patchy numbers, especially in developed-world markets where higher-yield model mix and cost of sales are crucial, resulted in an operating profit decline of 2.2% to £221.3m.
European unit sales fell by 6.9% to 108,000 machines. North America did better, rising by 5.9% to 36,000. The Japanese domestic market was 5.9% down to 48,000. Asia retreated marginally by 1% to 1.826 million, against muscular revenue growth of 14.4% to £2.206bn. Various other markets taken together – including Latin America, Australia and New Zealand – added 8.7% to 288,000.
Yamaha’s Land Mobility division, for which motorcycles are the key gravy train, had a more torrid time. While divisional revenue was 15.6% up at £4.219bn, operating profit sank by 18.1% to £224.9m – all bar £3.6m coming from bikes. The culprit was its loss-making recreational off-road vehicle business. More proof of the “two wheels good, four wheels bad” axiom?
For parent Yamaha Motor as a whole, half-yearly revenue was 16.2% up to £6.55bn and operating profit 6.2% down to £627.7m. Biggest single contributor at operating level was the Marine Products division, stacking on 12.6% to £304.7m with less than half of Land Mobility’s turnover. Net profit dropped by 10.8% to £508.5m.
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