Yamaha Corp (YAMCF) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello everyone, my name is Nishimura. I will be presenting to you the financial results of the third quarter for the fiscal year ending in March 2025. If you can please have a look at page 1, I would like to go over the highlights of the third quarter. First, for the performance of Q3 year-to-date, we experienced continued strong performance of B2B audio equipment, sales recovery of digital pianos, and impact of yen depreciation. However, the revenue declined in real terms due to continued weak musical instrument business reflecting the sluggish Chinese market. The core operating profit increased due to a significant profit increase in audio equipment business, positive effects impact, and reduction in SG&A cost despite the continued decline in musical instrument revenue. The company has made the decision to consolidate piano productions to Japan and China. Therefore, an impairment loss of 3 billion yen was recorded for the piano manufacturing facilities in Indonesia. As for the full-year forecast, revenue is generally in line with the previous forecast, but the core operating profit is expected to decrease due to one-time expense. An additional 3.5 billion yen in cost, such as special retirement expenses for Indonesian piano manufacturing facility personnel, are factored into the forecast. Next, I would like to move to page three, which is the summary of the third quarter year to date for the fiscal year. The sales revenue is 350.7 billion yen, an increase of 8.9 billion yen year on year. However, if we exclude the impact of the exchange rate, the revenue is minus 1.7%. The core operating profit is 31.9 billion yen, an increase of 4.1 billion yen year on year. The net profit is 14.3 billion yen, as shown here, a minus 6.4 billion yen year on year. This is the summar...