Yamaha (7951) investor relations material

Executive summary

• Revenue rose 12% year-over-year to JPY 116.3 billion in Q1 FY2027.3, driven by recovery in musical instrument sales, new product launches, and a weaker yen.

• Core operating profit nearly doubled to JPY 9.3 billion, supported by improved product mix, price optimization, and favorable exchange rates.

• Net profit surged 348.8% year-over-year to JPY 10.7 billion, boosted by a JPY 4.3 billion U.S. tariff refund.

• Comprehensive income reached JPY 20.6 billion, up from JPY 1.4 billion in the prior year.

• New product launches, especially in pianos and digital instruments, contributed significantly to growth.

Financial highlights

• Revenue: JPY 116.3 billion (+12% YoY); core operating profit: JPY 9.3 billion (+97.7% YoY); net profit: JPY 10.7 billion (+348.8% YoY), including U.S. tariff refunds.

• Core operating profit ratio improved from 4.5% to 8.0% YoY.

• Gross profit increased to JPY 46.9 billion from JPY 38.7 billion YoY.

• Cash and cash equivalents at period end were JPY 120.9 billion, up from JPY 103.2 billion a year earlier.

• Inventory increased by JPY 8.8 billion, mainly due to new products and FX.

Outlook and guidance

• Full-year FY2027.3 revenue forecast is JPY 490.0 billion (+5.3% YoY); core operating profit forecast is JPY 38.0 billion, unchanged; net profit forecast revised upward to JPY 31.0 billion due to tariff refunds.

• Additional procurement cost increases of JPY 3.5 billion expected, totaling JPY 10.5 billion for the year.

• Continued price optimization and new product launches planned to offset cost pressures.

• ROE forecast raised to 6.3%; ROIC forecast slightly lowered to 5.3%.

• Dividend per share forecast remains at JPY 26.00.