Yamaha - record-breaking 2023
In announcing Full Year 2023 financial results (the year to December 31, 2023), Yamaha Motor Co., Ltd. CEO Yoshihiro Hidaka is quoted as saying that "in fiscal 2023, we set new records for consolidated net sales and operating income. As demand for outdoor recreation slowed, primarily in developed markets, it remained strong for our core products of motorcycles and large outboard motors.
"Our efforts to counter rising costs by passing on prices and the weak yen contributed to us posting higher sales and profits." For 2024, Yamaha expects to set further new records and to see "improved supply of premium motorcycle and scooter models in emerging markets. We expect to clear the financial indicators of our three-year Medium-Term Management Plan (2022-2024).
"As we up the pace and tackle transformational challenges toward realising our long-term vision of "ART for Human Possibilities: Let's strive for greater happiness", we will endeavour to deliver Kando [a Japanese word for the simultaneous feelings of deep satisfaction and intense excitement that we experience when we encounter something of exceptional value] and answer the expectations of all our stakeholders."
Net sales were 2,414.8bn yen (an increase of 166.3bn yen or 7.4% compared with the previous fiscal year) and operating income was 250.7bn yen (an increase of 25.8bn yen or 11.5%). Ordinary income was 242.0bn yen (an increase of 2.7bn yen or 1.1%) and net income attributable to owners of parent was 164.1bn yen (a decrease of 10.3bn yen or 5.9%). "These figures once again reset the company's record for net sales and operating income.
"Net sales rose thanks not only to healthy demand for motorcycles, but also increased supply volumes resulting from supply chain operations returning to normal and improvements with logistics, production issues and other areas. Operating income increased due in part to higher unit sales, but also from the greater effects of passing on prices to offset the soaring costs of raw materials and more, and the benefits of a depreciated yen.
"For the motorcycle business, demand in Europe and North America was robust and also grew in many emerging markets, primarily in Asia, with the exception of Vietnam and China, which are suffering from prolonged sluggish economies. Higher unit sales in Europe, North America and in emerging markets - namely Indonesia, India and Brazil - resulted in higher net sales for the business. For operating income, the company brought in higher profits mostly thanks to these higher unit sales, but the benefits of passing on costs and a weaker yen also contributed".
With recreational vehicles (all-terrain vehicles, ROVs and snowmobiles), the boom in outdoor recreation has passed and as demand has slowed, so have unit shipments. On the other hand, the company's U.S. factory was also facing issues last year, but production efficiency improvements, together with the added gains from a weaker yen, gave the business higher sales.
