Improving Profitability in the Musical Instrument Business Through Expansion of High-Margin Products and Gross Margin Improvement

「Business profit increased despite higher procurement costs, due to an improved mix from growth in electronic musical instruments, pricing adjustments, and foreign exchange」

「In the musical instruments business, we will work to improve profitability by pursuing structural reforms in the piano and guitar businesses and increasing the weighting of high-value-added products, while returning to a growth trajectory by further strengthening the competitiveness of digital pianos and other products.」

「Acoustic piano revenue declined as sales in China fell. Electronic musical instrument revenue increased as digital piano sales grew in Japan, North America, Europe and elsewhere on stronger demand toward year-end. Orchestral, band and percussion instruments performed steadily and posted higher revenue, while guitar revenue increased on strong acoustic guitar sales. Operating profit fell ¥2,871 million, or 27.2%, from the same period of the previous year to ¥7,688 million.」

「Revenue for the six-month period ended September increased ¥8,506 million, or 3.9%, from the same period of the previous year to ¥228,134 million. Musical instrument sales were sluggish due to continued weak market conditions in China, but strong sales of audio equipment to corporate customers and the impact of yen depreciation against foreign currencies contributed to the increase.」

「Acoustic piano revenue declined due to sluggish sales in China. Electronic musical instrument revenue fell due to weaker demand for entry-level models. Orchestral, band and percussion instrument sales increased on recovering demand in Japan and Europe. Operating profit fell ¥10,032 million, or 32.0%, from the same period of the previous year to ¥21,352 million.」

「Acoustic piano revenue declined due to sluggish sales in China. Electronic musical instrument revenue fell as demand for entry-level models continued to weaken. Meanwhile, orchestral, band and percussion instrument sales increased, driven by continued strength in North America and recovering demand in Japan and Europe. Operating profit fell ¥7,555 million, or 36.8%, from the same period of the previous year to ¥12,995 million.」

「For the first quarter of the fiscal year, operating profit fell ¥4,308 million, or 39.2%, from the same period of the previous year to ¥6,669 million, due to continued weaker demand for entry-level models, sluggish digital piano sales, and production adjustments to reduce piano inventories.」

「By product, acoustic piano revenue declined due to disruption in China caused by COVID-19. Electronic musical instruments performed roughly in line with the previous year despite lower demand for entry-level models. Guitar revenue increased on strong electric guitar sales. Orchestral, band and percussion instrument revenue increased on significant growth in North America. Operating profit increased ¥2,281 million, or 7.8%, from the same period of the previous year to ¥31,384 million.」

「Revenue for the second quarter of the fiscal year increased ¥16,255 million, or 12.1%, from the same period of the previous year to ¥150,101 million. By product, acoustic piano revenue declined due to the impact of the Shanghai lockdown and other factors. Electronic musical instruments performed roughly in line with the previous year. Guitar revenue increased, driven by double-digit growth in China. Orchestral, band and percussion instrument revenue increased, primarily due to significant growth in sales in North America. Operating profit increased ¥1,269 million, or 6.6%, from the same period of the previous year to ¥20,550 million.」

「Acoustic pianos and electronic musical instruments posted lower sales in China and lower revenue overall due to the impact of the Shanghai lockdown and other factors. Guitar sales grew by double digits in China and also increased in North America, but revenue declined. Orchestral, band and percussion instruments posted higher revenue, primarily due to a significant recovery in sales in North America. Operating profit fell ¥830 million, or 8.0%, from the same period of the previous year to ¥9,557 million.」

「Although product shortages caused by difficulties procuring semiconductors, including sound source LSIs, and logistics disruptions persisted, revenue in the musical instruments business increased ¥37,172 million, or 15.6%, from the previous period to ¥276,153 million as market conditions recovered.」

「Although product shortages caused by difficulties procuring semiconductors, including sound source LSIs, and logistics disruptions persisted, all products posted higher revenue as market conditions recovered. Revenue also increased in all regions. Operating profit increased ¥6,100 million, or 26.5%, from the same period of the previous year to ¥29,102 million.」

「Although product shortages caused by difficulties procuring semiconductors, including sound source LSIs, and logistics disruptions persisted, all products posted higher revenue as market conditions recovered. Revenue also increased in all regions. Operating profit increased ¥7,541 million, or 64.2%, from the same period of the previous year to ¥19,281 million.」

「By product, all products posted higher revenue, and acoustic pianos, electronic musical instruments and guitars also recorded higher revenue than in the same period two years earlier, before the impact of the spread of COVID-19. Revenue increased year on year in all regions as well. Operating profit increased ¥7,872 million, or 313.0%, from the same period of the previous year to ¥10,387 million.」

「Piano revenue declined despite a return to a growth trajectory in sales in China and recovering market conditions in various countries, as sales through stores fell due to the impact of the spread of COVID-19. Demand for electronic musical instruments remained firm, particularly for mass-market products, on stay-at-home demand, but revenue declined due in part to product shortages.」

「By product, acoustic pianos and electronic musical instruments posted lower revenue as product shortages persisted despite recovering market conditions. Recovery in the wind instrument market remained slow. Guitar sales performed strongly in Japan and China, resulting in performance roughly in line with the same period of the previous year.」

「By product, although market conditions for electronic musical instruments remained firm on stay-at-home demand, revenue fell because supply was insufficient due to restrictions on factory operations in Indonesia and elsewhere amid the spread of COVID-19. Acoustic pianos and wind instruments also posted lower revenue despite market conditions being on a recovery trend. Guitar sales increased, driven by strong sales in Japan, Europe, North America and China. Operating profit fell ¥10,547 million, or 47.3%, from the same period of the previous year to ¥11,740 million, including a ¥1,200 million negative foreign exchange impact.」

「By product, acoustic pianos and wind instruments posted lower revenue due to the impact of store closures and other factors. Guitar sales, which have a relatively high e-commerce share, increased in Japan and Europe, securing sales roughly in line with the previous year. Electronic musical instruments posted higher revenue in North America but lower revenue overall. Operating profit fell ¥7,334 million, or 74.5%, from the same period of the previous year to ¥2,515 million, including a ¥600 million negative foreign exchange impact.」

「Piano sales increased for high-value-added products such as TransAcoustic, mainly in developed markets, but the business posted lower revenue because store sales account for a high proportion of sales and the key Chinese market was affected by the spread of COVID-19. Electronic musical instruments posted higher revenue, helped by buoyant EC sales and the effect of new portable keyboard products.」

「By product, acoustic piano sales continued to grow at a double-digit rate in China and also increased in other emerging markets and Europe. Electronic musical instruments and wind instruments maintained strong sales in all regions except Japan, while guitar sales increased in all regions, posting double-digit growth. Business profit absorbed a ¥3.9 billion negative impact from foreign exchange movements and increased by ¥1.036 billion, or 3.1%, year on year to ¥34.802 billion.」

「Business profit absorbed a ¥2.3 billion negative impact from foreign exchange movements and increased by ¥1.863 billion, or 9.1%, year on year to ¥22.287 billion.」

「Business profit absorbed a ¥700 million negative impact from foreign exchange movements and increased by ¥185 million, or 1.9%, year on year to ¥9.849 billion.」

「Piano sales grew strongly in the mass-market range, while the high-end range also remained solid. Digital pianos performed well, led by entry-level models. Wind instruments also remained solid, and acoustic guitars in the mid-range grew in China and North America.」

「Revenue for the cumulative third quarter increased by ¥6.234 billion, or 3.0%, year on year to ¥215.026 billion. By product, acoustic piano sales continued to post double-digit growth in China and remained strong in North America and other regions. Digital piano and wind instrument sales increased in all overseas regions, while guitar sales increased significantly in China and also grew in North America and other emerging markets. Operating profit increased by ¥7.643 billion, or 27.2%, year on year to ¥35.778 billion.」

「By product, acoustic piano sales remained strong in all regions except Europe. Digital piano sales increased in China and North America, while portable keyboard sales increased in Europe and China. Wind instrument sales remained solid in all regions, and guitar sales grew in North America, China and other emerging markets. Operating profit increased by ¥4.968 billion, or 29.9%, year on year to ¥21.608 billion.」

「By product, acoustic piano sales remained solid in China and North America. Digital piano sales increased in all regions except Japan, while portable keyboard sales increased in all regions. Wind instrument sales were strong in North America and China, and guitar sales increased significantly in North America, China and other emerging markets. Operating profit increased by ¥1.937 billion, or 23.5%, year on year to ¥10.187 billion.」

「Piano sales were driven by strong growth in the mass-market range, while the high-end range also remained solid. Digital pianos performed well, led by entry-level models. Wind instruments also remained solid, and acoustic guitars in the mid-range grew in China and North America.」

「Revenue for the cumulative third quarter increased by ¥12.264 billion, or 6.2%, year on year to ¥208.792 billion, partly due to a ¥9.3 billion positive impact from foreign exchange movements. By product, acoustic and digital piano revenue increased due to double-digit growth in China and other factors. Portable keyboard sales increased in Europe due to the launch of new products. Wind instrument sales were strong in Japan and North America, while guitar sales increased in China and other Asian regions. Operating profit increased by ¥796 million, or 2.9%, year on year to ¥28.135 billion.」

「By product, acoustic and digital piano sales increased, driven by continued double-digit growth in China. Portable keyboard sales struggled, partly because customers traded up to digital pianos. Wind instrument sales were strong in Japan and China, while guitar sales increased in China and other Asian regions. Operating profit declined by ¥2.157 billion, or 11.5%, year on year to ¥16.639 billion, due to an ¥1.1 billion negative impact from foreign exchange movements and the occurrence of one-time expenses, among other factors.」

「Acoustic and digital piano sales increased, driven by double-digit growth in China. Portable keyboard sales struggled, partly because customers traded up to digital pianos. Wind instrument sales increased on solid performance in the mid- to high-price ranges, while guitar sales were strong in China. Operating profit declined by ¥1.117 billion, or 11.9%, year on year to ¥8.25 billion, due in part to a ¥1.4 billion negative impact from foreign exchange movements.」

「By product, acoustic piano sales were strong in North America, Europe and China, while guitar sales remained strong in all regions. Sales of electronic musical instruments, including digital pianos, and wind instruments also continued to be solid. Operating profit declined by ¥546 million, or 2.0%, year on year to ¥27.339 billion, due in part to a ¥7.7 billion negative impact from foreign exchange movements.」

「Operating profit increased by ¥1.997 billion, or 11.9%, year on year to ¥18.796 billion, despite a ¥5.1 billion negative impact on profit from foreign exchange movements.」

「In the first quarter, operating profit increased for the fifth consecutive period, and significant profit growth was achieved, with operating profit in the core musical instruments and audio equipment businesses reaching record highs.」

「We will improve margins by expanding high-margin electronic musical instruments and improving gross profit margins through such measures as reviewing the product mix and selling prices. We will also accelerate efforts to strengthen product competitiveness by pursuing the essence of musical instruments through proprietary sensory evaluation technology and providing new value through digital musical instruments, hybrid pianos and other products.」