Investing.com -- Yamaha Corp reported a weak business profit for the January-March period, coming in at ¥4.8 billion ($44.5 million), albeit slightly ahead of consensus forecasts by ¥1 billion to ¥2 billion. The company has also released its fiscal year plan, which anticipates a consolidated revenue decline of 1.5%.
The business profit estimate for the new fiscal year is ¥40 billion, falling short of the consensus of ¥43.5 billion. Yamaha’s plan indicates an increase in overall revenue from musical instruments, however, it expects a decrease in revenue from audio equipment for retail, corporate, and automotive clients.
For its corporate clients, Yamaha projects a one-off revenue decline as a result of working down the order backlog. Simultaneously, the company announced a new mid-term plan (MTP), which targets real growth in the second and third years through mix improvement and cost cuts.
Yamaha foresees revenue growth in a wide range of products, including audio equipment for retail clients, which is currently in the red, and pianos, even though it acknowledges that predicting a recovery in the Chinese market is challenging.
Citi, commenting on Yamaha’s announcements, stated, "We regard the profit (13.5% business profit margin) and RoE (10%) targets as largely predicated on sales. Overall, the MTP looks ambitious and optimistic."
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.