Yamaha Corp (YAMCF) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello, everyone. My name is Nishimura. I would like to present to you the financial results for the first quarter of the fiscal year ending March 2026. Please turn to the first page titled Q1 Highlights. First, an overview of the financial results. These are the results for the first quarter of the fiscal year ending March 2026. While the slowdown in audio equipment was as expected, the recovery pace for musical instruments, particularly pianos, was slow. Additionally, the appreciation of the yen contributed to a decline in revenue. Although we work to contain SG&A, profit declined due to factors such as the yen appreciation, the impact of additional U.S. tariffs, and a deterioration in the product mix caused by a decline in sales of audio equipment for professional use. Regarding the full-year forecast, we have revised our full-year earnings forecast downward to reflect the impact of the additional U.S. tariffs currently anticipated along with our planned countermeasures. Going forward, we will continue to take all possible actions to mitigate the effects of these tariffs. Next, I would like to explain about the performance summary. Please turn to page 3, titled Q1 Summary. These figures represent the actual performance for the first quarter. The revenue was 103.9 billion yen. The core operating profit was 4.7 billion yen, resulting in an OP ratio of 4.5%. The net profit for the quarter was 2.4 billion yen. The exchange rates for the first quarter are as shown here on the slide. Net profit was minus 7 billion yen year-on-year. As for the revenue, it declined 7.4% year-on-year, but when excluding the impact of the exchange rate, the decline was 2.8%. Next, please refer to page 4, a waterfall chart which illustrates the factors behind the changes in core operating pro...