A Recovery in the Americas
YAMABIKO, which develops, manufactures and sells a variety of products belonging to Outdoor Power Equipment, Agricultural Machinery and Industrial Machinery, is to see a recovery of sales in the Americas, the mainstay by region, for FY12/2024 over FY12/2023. At the same time, the Company is to see an acceleration in sales growth rate on the Industrial Machinery side. In the actual results for FY12/2023, sales on the Outdoor Power Equipment side, the mainstay by business, were stagnating and thus the Company’s sales as well. The Company suffered from a recoil reduction in demand associated with stay-at-home trend stemming from the impact of Corona disaster in the Americas as well as unfavorable weather conditions during demand season. However, the Company saw operating profit highest ever, driven by an improvement in gross profit margin, which was far more than compensating. The Company states that it has made a steady progress in “sale of high-margin inventory built up in North America during the previous year, ongoing cost cutting and revision on selling prices in Japan and overseas.” Meanwhile, for FY12/2024, the Company is going for an increase in sales due mainly to a progress made for optimizing of inventory levels at distributors in North America. Furthermore, the Company expects an increase in earnings as a result of “full-year impact of revision of selling prices, a review of product mix and lower ocean freight rate.” Still, the Company is to see an increase in expenses at the same time as it is to aggressively invest for growth from a long-term perspective, e.g., in “developments of new business and/or new product, those of IT system and those of marketing.” The Company is currently in the process of propelling “growth in existing domains and monetization of new business,” calling for prospective sales of \250,000m for FY12/2030, implying CAGR of 7.4%, when setting the actual results for FY12/2023 as the point of origin.
