Yamaha Motor (7272) Q2 2024 earnings summary

Executive summary

• Revenue reached a record ¥1,348.4 billion in the first half of 2024, up 10% year-over-year, with operating income at ¥154.4 billion and net income at ¥113.1 billion, driven by strong motorcycle sales and favorable currency effects.

• Premium motorcycle shipments increased in developing countries, while marine and robotics segments faced revenue and profit declines due to lower demand and higher costs.

• Management addressed compliance issues related to model designation, with corrective actions and shipment resumption for affected models.

• The company completed the acquisition of Torqeedo GmbH to strengthen its marine electrification strategy.

• Shareholder returns included a planned annual dividend of ¥50 per share and a ¥20 billion share buyback.

Financial highlights

• Operating income margin was 11.4%, nearly flat year-over-year, with basic EPS at ¥114.85, up from ¥102.01 year-over-year (adjusted for stock split).

• Free cash flow improved to ¥30.1 billion from -¥1.4 billion year-over-year; cash and equivalents at period end were ¥338.1 billion.

• Interest-bearing debt increased to ¥925.5 billion; net cash (excluding Financial Services) turned positive at ¥7.8 billion.

• Forex impact contributed positively, with ¥38.7 billion.

• Total assets increased to ¥2,805.5 billion as of June 30, 2024.

Outlook and guidance

• Full-year 2024 revenue is forecast at ¥2,600 billion, with operating profit projected at ¥260 billion and profit attributable to owners at ¥175 billion.

• Basic EPS for the year is expected to reach ¥178.33, factoring in treasury share purchases.

• Motorcycle sales expected to remain strong in Brazil, India, and Indonesia, while marine and RV/SPV segments face continued inventory adjustments and production cutbacks.

• Robotics segment anticipates demand recovery in the second half, with cost controls to improve profitability.

• Annual dividend guidance maintained at ¥50 per share, with interim dividend at ¥25 per share.