Topic: Yamaha Reports Financial Results for FY2023.3 and Outlook for Performance 2024

[keynote]

I thought I'd post this latest financial report from Yamaha. Looks encouraging going into 2024 and beyond.

Yamaha Reports Financial Results for FY2023.3 and Outlook for Performance in FY2024.3 [IFRS]

Musical Instruments

Revenue of ¥302.7 billion (+9.6%) and core operating profit of ¥36.2 billion (-3.0%)

Revenue of the musical instruments segment overall increased by ¥26.5 billion year-on-year, while core operating profit decreased by ¥1.1 billion due to the impact of the significant decline in acoustic piano sales.

Audio Equipment

Revenue of ¥107.6 billion (+11.1%) and core operating profit of ¥3.5 billion (+125.3%)

Revenue of audio products declined significantly due to the impact of semiconductor procurement difficulties and sluggish sales of entry-level models. Revenue of professional audio equipment increased due to improved product supply led by a partial easing of semiconductor procurement difficulties. Revenue of ICT (Information and Communications Technology) equipment increased significantly due to continued strong sales of network-related products.

Outlook for Performance in FY2024.3

Forecast for record-high core operating profit and dividend increase

Although the outlook for the global economy remains uncertain, the Company forecasts its revenue of ¥470.0 billion (+4.1%), core operating profit of ¥56.0 billion (+22.1%), and profit for the period attributable to owners of the parent of ¥42.0 billion (+10.0%), incorporating a recovery in markets such as China and Europe, as well as an improvement in product supply shortages due to semiconductor procurement difficulties and other factors.

Core operating profit of ¥56.0 billion = $403,164,214.00 is projected to be a record high, surpassing the ¥52.7 billion in the fiscal year ended March 31, 2019. In addition, an annual dividend is projected to be ¥74 per share (an increase of ¥8 per share from the previous year).

Note: Core operating profit corresponds to operating profit under Japanese GAAP and is calculated by subtracting selling, general and administrative expenses from gross profit.

It looks like it will be a banner year for Yamaha Music Division during the rest of 2023 and in 2024. Yamaha has already released many new products in 2023 including the new CK series keyboards and the new DM3 Series Digital Mixers in the pro-audio realm, etc., etc. I think what could ultimately boost Yamaha's bottom line even more is the release of a Montage successor and a Genos successor. Higher-end products are still selling really well and the two high-end products that consumers are clamoring for would be a solid revenue booster for Yammie, IMO. The global pandemic is over and the supply chain(s) have improved therefore parts will be easier to secure, and it should continue to get better going forward in my opinion. All the more reason for Yamaha to finally release a Montage & Genos successor either this year or next.  I prefer this year, needless to say. 

All the best, Mike

[Lee Batchelor]

Thanks for the information, Mike. Not that I doubt your report but what is your source? How do you know these figures?
Looks like Yamaha could afford to give all us Genos users a free Genos 2 !

[Danny1972]

Looks like Yamaha could afford to give all us Genos users a free Genos 2 !

Lol...

[pjd]

Thanks for the information, Mike. Not that I doubt your report but what is your source? How do you know these figures?
Looks like Yamaha could afford to give all us Genos users a free Genos 2 !

Hi Lee --

Yamaha is a public corporation and is required to file its financial information. The Yamaha investors page is:

https://www.yamaha.com/en/ir/

You'll find the recent report quoted by Mike as well as enough financial data to crush a small car. 

While Mike's comments are sunny, as an investor, I would be concerned about a decline in profitability even while revenue rose. That means cost cutting somewhere. Yamaha continues to be concerned about the availability of critical components. Here, they are more likely to be affected by the AKM semiconductor factory fire than lingering pandemic effects. I don't think Yamaha are out of the woods yet with respect to DAC and ADC integrated circuits from AKM.

https://www.strata-gee.com/akm-fire-update-co-makes-progress-interim-solution-shows-promise/

I would love to see a breakdown of Yamaha's Digital Musical Instruments revenue by product group: digital pianos, portable keyboards, synthesizers, and organs. Yamaha still claim to have 52% share of the worldwide market for portable keyboards and 47% share of digital pianos. Genos/Montage revenue may not be significant when compared to digital pianos, for example, or entry-level portable keyboards.

Hope this helps -- pj

[Lee Batchelor]

Thanks, PJ! Duh!! Of course, Yamaha is publicly traded. That data is readily available.

[Toril S]

Where can I sign up for a free Genos 2??😀😀😀

[mikf]

These numbers make it clear how insignificant the TOTL arrangers are in the Yamaha big picture.  If you read the whole annual report where these numbers came from, they state that their main target for portable keyboards is the low cost market. And the other main target is packaging more electronic technology into conventional pianos.
Might explain why there has been no rush to produce a Genos 2, but they did produce a new CVP and a DGX.
Mike

[chesterkins]

I wonder if with these comments on concentrating on the lower end of the arranger market PLUS the survey about attitudes towards upgrades and updates
Could we be offered 3.0 update for say $500 instead of a whole new instrument?
Thoughts

[overover]

I wonder if with these comments on concentrating on the lower end of the arranger market PLUS the survey about attitudes towards upgrades and updates
Could we be offered 3.0 update for say $500 instead of a whole new instrument?
Thoughts

Yamaha could improve a lot of the current Genos with a software update (if they only wanted to). In my opinion, however, we absolutely need a "hardware update", i.e. a Genos successor. Deficits of the current Genos, such as the display that is difficult to read under certain conditions or the lack of motorized sliders (or at least endless encoders instead) cannot be implemented by software.

I've had my Genos since 2017 and still almost always play with the Tyros5 at live performances because it has many detailed advantages over the Genos.


Best regards,
Chris