Yamaha half-time results show music income rise

Yamaha has released its second quarter results for the period ending March 31st 2017, showing the impact of exchange rate fluctuations on sales. 

Although first half sales declined year-on-year, total group operating income increased for the fifth consecutive year. 1H operating income amounted to ¥24.6bn against ¥21.bn in the same period 2016, with musical instruments and audio equipment both achieving record levels of income. The decline in sales was chiefly due to the impact of exchange rates (-¥22.4bn) and the transfer of music school operations (-¥4.2bn).

First half sales of musical instruments decreased from ¥110bn in the same period of the previous year, to ¥102.2bn, but operating income rose from ¥16.8bn to ¥18.8bn.

Operating income increased due to higher actual sales, sales price adjustments, cost reductions, and control of SG&A expenses including the decrease in amortization of goodwill 

Music net sales in Europe are expected to realise ¥46.6bn in the full financial year 2017 against ¥50.7bn in 2016.

Q2 European sales were down from ¥13.8bn in 2016 to ¥11.4bn in Q2 2017. First half net sales were down from ¥24.5bn to ¥23.3bn. The second half of 2017 is forecasted to generate net European sales of ¥23.3bn against ¥26.3bn in the previous second half period.