Yamaha (7951) Q1 2025 earnings summary

Executive summary

• First-quarter revenue rose 5.6% year-over-year to ¥112.1 billion, driven by strong B2B audio equipment sales and favorable exchange rates, but real revenue declined due to weak musical instrument sales in China.

• Core operating profit increased 41.5% year-over-year to ¥9.2 billion, mainly from exchange rate gains offsetting lower musical instrument profits.

• Net profit grew 45.2% year-over-year to ¥9.4 billion.

• Full-year forecasts were revised downward due to slow recovery in China, despite structural reforms and an early retirement program at the China piano factory.

• Comprehensive income decreased 14.5% year-over-year to ¥27.3 billion, mainly due to lower gains on financial assets.

Financial highlights

• First-quarter revenue: ¥112.1 billion (+5.6% YoY); core operating profit: ¥9.2 billion (+41.5% YoY); net profit: ¥9.4 billion (+45.2% YoY).

• Gross profit increased to ¥45.2 billion from ¥39.5 billion year-over-year.

• Basic EPS for Q1 FY2025.3 was ¥57.15, up from ¥38.26 in the prior year.

• Total assets at June 30, 2024: ¥677.5 billion; equity ratio 77.6%.

• Cash and cash equivalents at period end were ¥98.0 billion.

Outlook and guidance

• Full-year revenue forecast revised to ¥475.0 billion (+2.6% YoY), with core operating profit at ¥46.0 billion (+36.7%) and net profit at ¥35.5 billion (+19.8%).

• Basic EPS forecast for FY2025.3 is ¥71.99, reflecting a 3-for-1 stock split effective October 1, 2024.

• Full-year revenue and profit expected to grow versus last year, but down slightly on a constant currency basis.

• Exchange rates expected to contribute positively to core operating profit; procurement and freight costs remain headwinds.

• Forecast revision reflects updated exchange rates and continued slow recovery in China.