Yamaha Corp (YAMCF) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

I am Nishimura. I will now take you through the financial results of the fiscal year ended March 2025. I will start with highlights of the results. The full year ended March 2025 revenue was almost flat year on year with continued slump in the musical instruments business due to sluggish market conditions in China. despite continued strong performance of B2B audio equipment and weaker Yen. Core operating profit increased driven by the impact of FX, significant profit growth in the audio equipment business, structural reform last fiscal year, and the curbing of SG&A spending, which more than offset the decline of revenue in real terms. Net income decreased mainly due to ¥14.3 billion worth of structural reform expenses, including impairment loss on piano manufacturing facilities. As for our focus for the full fiscal year ending March 2026, we expect positive revenue growth in real terms driven by global recovery in musical instrument sales despite lingering weakness in Chinese market. With regards to the U.S. tariffs, those that were in effect as of March have been baked into our forecast, but there are still a lot of uncertainties. Therefore, we have not factored in additional tariffs to take effect in April and beyond in our current guidance. Next, I would like to move on to a financial summary. First, with the fiscal year 2025 March results, revenue was 462.1 billion yen. Core operating profit was 36.7 billion yen with 7.9% margin. Net profit was 13.4 billion yen. The exchange rate of the full year is shown in the table. I will take you through some positive and negative contributions to core operating profit. The upper table shows the comparison with the previous fiscal year ended March 2024. FX brought 8 billion yen favorable variance. The cost increase on higher...