According to a report from Nikkei Asia, Yamaha Corporation announced on November 1 that its financial forecast for the fiscal year 2024 (ending March 2025) indicates a 39% decrease in consolidated net profit (under international accounting standards), dropping to 18 billion yen. This marks a significant revision from its previous expectation of a 20% increase to 35.5 billion yen, now reflecting a decline in profits. The downward adjustment considers the ongoing sluggish sales of pianos in the Chinese market, which has further decelerated. Yamaha plans to recognize an asset impairment loss of 7.8 billion yen related to its Chinese factory and its Indonesian parts supplier.
China is one of Yamaha’s key markets. The demand for pianos has plummeted due to the local economic slowdown and changes in educational policies, particularly the cancellation of the art bonus points in entrance examinations. As a result, Yamaha’s piano manufacturing facility in China has entered a four-month production halt starting in September. Executive Director Jun Nishimura revealed in a press conference on the same day that the Indonesian factory also plans to suspend production simultaneously.
In China, sales of upright pianos, which were previously considered relatively affordable, have sharply declined. Additionally, the prolonged economic slowdown has also affected the sales of high-end grand pianos. The inventory levels of pianos in the market remain high. The company previously estimated that inventories would return to reasonable levels by the fiscal year 2025, but this is now expected to be delayed until the fiscal year 2026.
The consolidated financial report for April to September 2024, released on the same day, shows that net profit has decreased by 65% year-on-year, falling to 5.2 billion yen, even as operating revenue rose by 4% to 228.1 billion yen.
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