According to forecasts, Yamaha’s group operating profit will likely increase for a fifth straight year in fiscal 2016, thanks to strong sales of musical instruments in Asia and audio equipment in Europe.
Operating profit is forecasted to reach around 43 billion yen ($392 million) in the year ending next March, up five per cent from the estimate for fiscal 2015. The figure is the second highest on record after the 45 billion yen recorded in fiscal 2003. Sales are expected to rise one per cent to just under 445 billion yen.
In China, high margin electric pianos have been selling well, buoyed by strong demand among affluent families in big cities. The company also sees sales of acoustic pianos climbing in rural China for use in schools.
The firm has cultivated demand in the growing Chinese market by opening music schools bearing its name, establishing a brand image that has shielded itself from price competition. Sales of guitars are rising too.
In Southeast Asia and India, the firm will increase the number of music school openings and expand sales channels. The company plans to team up with Yamaha Motor, with which it has capital ties, and display its musical instruments at Yamaha Motor’s directly run motorcycle dealerships to boost exposure.
The company aims to increase the number of contract Yamaha dealers worldwide by ten per cent over the next three years as part of its stated aim to increase operating income by 12 per cent by 2019. It projects a six per cent increase in its MI business and eight in pro-audio.
In Europe, sales of amplifiers and speakers, as well as audio mixers and other live audio equipment, are expected to increase. There are concerns over the strength of the Yen, which may force the firm to raise prices.
Yamaha is due to release its results for fiscal 2015 on 28th April. Operating profit appears to have risen 40 per cent to about 41 billion yen, in line with the company’s projection.
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