Yamaha consolidated business results for 2020 (full year to December 2020)
Yamaha has released its full year 2020 results with total corporate net sales for Yamaha Motor Co., Ltd.’s consolidated accounting period of 1,471.3bn yen (a decrease of 193.5bn yen or 11.6% compared with the previous fiscal year).
In its 'Land Mobility Business' (essentially its motorcycles division) net sales were 946.5bn yen (a decrease of 173.4bn yen or 15.5% compared with the previous fiscal year) and operating income was 18.5bn yen (a decrease of 23.2bn yen or 55.7%).
The company said that "for motorcycles in developed markets, immediate total demand has recovered, but production was unable to keep up with the rapid pace of recovery and unit sales fell. In addition, temporary closures of factories in Japan and France lowered utilisation rates, which in turn led to decreased sales and profits.
"For motorcycles in emerging markets, total demand is generally trending toward recovery, but the lockdowns and restrictions on social activities due to COVID-19 have led to an economic slowdown, declining consumer sentiment and other effects, and this resulted in lower sales and profits overall."
Total unit sales in 2020 were 3.802 million units, down from 5.056 million in 2019. European unit sales were 180,000 units (modestly down from 186,000 in 2019); in North America unit sales were 56,000 units (down from 63,000); in Japan domestic unit sales were essentially 'flat' at 86,000 units (down from 88,000 in 2019).
Yamaha is forecasting strong unit recovery in 2021 at around 4.778 million, with Europe expected to account for just over 200,000 of those.
2020 net sales revenue in the 'Land Mobility' division was 9.465bn yen, down from 1,119.8bn in 2019.
Yamaha's Asian business lost ground with 3.077 million units sold in 2020 (against 4.271 million units in 2019).
For differing reasons, Yamaha's sales or revenue, or both, were down in Indonesia, Philippines and Vietnam. Sales in Taiwan were up.
"India has seen total demand recover and sales of new models have been strong, with results from August onward exceeding those of the previous year.
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"There has been a spike in demand for outdoor recreation products (recreational vehicles, ATVs, ROVs and snowmobiles) with greater sales seen in our principal markets, including the biggest market - North America - with sales and profits both growing.
"For electrically power-assisted bicycles, the impacts of the COVID-19 pandemic in Japan brought about production delays and the ceasing of sales work, resulting in lower complete bicycle unit sales and thus lower sales numbers. However, an increase in sales of e-Bike system kits improved the model mix, bringing in higher profits."
In other news, Yamaha has announced that it is to rationalise its production footprint in Japan, consolidating and relocating the motorcycle production roles of the Hamakita and Nakaze factories (both in Hamamatsu City) to the Iwata main factory.
The company has been reallocating the production duties of its Iwata main factory and other surrounding factories since 2020 with the aim of improving production efficiency and market adaptability as part of a global structural reform of its production bases.
The consolidation and relocation work for these two factories will begin in stages from 2022 and is scheduled for completion in 2024 when Hamakita will close, reducing the number of motorcycle and marine engine production bases around the headquarters from the current six to five.
