Yamabiko sales up on strength of OPE in Q1

Yamabiko, parent company of Echo USA based in Tokyo, released its financial results for Q1 2025, Jan. thru March. The company reported its sales increased year-on-year, as the core overseas OPE business performed well in the North American and European markets.

On the profit side, selling, general and administrative expenses increased due to higher total personnel costs from rising domestic wages and the front-loading of marketing activities in North America, resulting in a decrease in operating profit. Ordinary profit also decreased, as foreign exchange gains that contributed to increased profit in the same period last year turned into foreign exchange losses this period due to the US dollar trending weaker against the yen. As a result, net profit also decreased.

OPE performance

The company reported its OPE sales overall rose up 10.3% to 33,910 million yen. OPE makes up more than three-quarters of Yamabiko’s revenue globally. In total, the company’s sales were up 7.3% to 43,785 million yen. 

OPE sales by region

USA, up 3.9% to 24,541 million yen

Sales to distributors and home improvement centers increased steadily in anticipation of the spring demand season, resulting in increased revenue.

EU, up 53.3% to 3,991 million yen

Sales increased due to a rise in sales of new robotic lawnmowers and recovery in sales backed by inventory clearance at distributors that progressed last year.

Japan, up 3.2% to 3,408 million yen

Sales of chainsaws, trimmers, and brushcutters remained steady and increased, driven by strong purchasing motivation among farmers due to rising rice prices.

Forecast

The company says that in the steadily growing North American market, sales are progressing smoothly, particularly in home improvement center channels, and in Europe, increased sales to distributors and dealers are expected as inventory levels normalize.

Although net sales excluding foreign exchange impact are expected to be in line with the initial plan, net sales were revised downward to reflect changes in exchange rates. Operating profit, ordinary profit, and net profit are also forecasted to decrease from the previous projection.

In the FY2025 earnings forecast, the impact was estimated based on the assumption that the U.S. tariff rates at the time of planning will continue throughout the year. Although most of the products sold in the U.S. are manufactured at our local subsidiary, the supply chain spans multiple countries including Japan, resulting in a certain level of impact.

However, we plan to limit the impact through the following countermeasures.

• Fully utilize the functions of the U.S. production site
• Accelerate the plan to transfer production to the U.S.
• Promote company-wide efforts to further reduce costs
• Optimize the supply chain through collaboration with partner companies