Yamaha Motor (7272) Q3 2024 earnings summary

Executive summary

• Revenue rose to ¥1,976.9 billion (up 7.7–8% YoY), driven by strong motorcycle sales in Brazil, India, and Indonesia, while marine, RV, and SPV segments declined; operating income was ¥201.0 billion (up 0.8–1% YoY), but net income fell to ¥136.1 billion (down 4.8–5% YoY) due to FX losses and higher interest expenses.

• Robotics segment narrowed its deficit with increased sales targeting AI-related demand, but recovery was slower than expected.

• Downward revision of full-year revenue to ¥2,600.0 billion and operating income to ¥235.0 billion; annual dividend forecast unchanged at ¥50 per share.

• Foreign exchange and cost pressures, including higher freight, raw materials, and labor, weighed on profitability.

Financial highlights

• Q3 revenue: ¥1,976.9 billion (108% YoY); operating income: ¥201.0 billion (101% YoY); net income: ¥136.1 billion (95% YoY); EPS: ¥138.49 (98% YoY).

• Free cash flow improved to ¥96.4 billion from ¥21.7 billion YoY; cash and cash equivalents at period end: ¥359.8 billion.

• Gross profit increased to ¥643.7 billion; gross margin improved.

• Equity attributable to owners of parent rose to ¥1,138.9 billion, with a 43.2% equity ratio.

• Full-year forecast: revenue ¥2,600.0 billion, operating income ¥235.0 billion, net income ¥160.0 billion, EPS ¥163.04.

Outlook and guidance

• Full-year 2024 revenue forecast is ¥2,600.0 billion (+7.7% YoY), operating profit ¥235.0 billion, net income ¥160.0 billion, EPS ¥163.04.

• Dividend forecast remains unchanged at ¥50 per share.

• Market conditions worsening in SPV and RV businesses, with inventory write-offs and business structure reviews underway.

• Motorcycle sales expected to exceed forecasts in Brazil, India, and Indonesia; marine business expects gradual US demand recovery.

• Guidance revised to reflect treasury share purchases and current business conditions.