Yamaha Corp (YAMCF) Q4 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Now I will explain the financial results for FI2026.3. First, here is an overview of the results. Although the Chinese market remained sluggish and strong demand for audio equipment for professional use in Europe and the US had declined, revenue remained on par with the previous year due to a recovery in sales in the musical instruments business and the continued depreciation of the yen. However, while we advanced structural reforms in challenging businesses and price optimization, Core operating profit declined due to the impact of additional US tariffs, soaring costs for parts and raw materials, and a deterioration in the product mix resulting from lower sales of digital mixers. For the fiscal year ending March 2027, we expect revenue to return to a growth trajectory and increase across all regions, although the external environment remains uncertain. Furthermore, while making growth investments from a medium-term perspective, we expect core operating profit to increase by offsetting external factors such as rising procurement costs through the implementation of structural reforms and price optimization. Next are the full year results for the fiscal year ended March 2026. Revenue was 465.3 billion yen. Core operating profit was 31.9 billion yen. Core operating profit ratio was 6.9%. and net profit was 23.7 billion yen. Exchange rates are as shown here. I will now explain the factors contributing to the change in core operating profit. Starting from the previous fiscal year's figure of 36.7 billion yen, while we benefited from favorable exchange rates and the structural reforms implemented last fiscal year contributed to an increase in profit. However, the impact of additional US tariffs, soaring prices for raw materials and components, and a deterioration in the pr...