Sharp returned to profit in 2024, but 2025 outlook slashed amid weak demand.
Sharp Corporation reported a return to profitability in fiscal 2024 but cut its forecast for the current year, as weakening demand and a steep decline in device sales weighed on its outlook.
The Japanese electronics maker posted a net profit of ¥36 billion ($231 million/ €214 million) for the year to March, rebounding from a loss a year earlier. Operating profit rose to ¥27.3 billion ($175 million/ €163 million).
Sales across the Smart Office segment – which includes multifunction printers (MFPs) – grew 16.9% to ¥680.6 billion ($4.4 billion/ €4.1 billion), supported by increased demand in Europe and Japan. Operating profit in the segment jumped 43.6%, with Sharp citing strong uptake of high-value MFPs and displays, as well as corporate PC upgrades ahead of Windows 10 end-of-support.
However, the company expects a sharp downturn in fiscal 2025, forecasting a 14.4% drop in revenue and a 72.3% decline in net profit to ¥10 billion ($64 million/ €59 million), citing continued weakness in its device businesses and macroeconomic uncertainty.
Sharp said its ongoing transformation includes transferring several business units to Hon Hai subsidiaries. It also noted declining inventories and reduced interest-bearing debt, underscoring efforts to shore up cash flow and improve capital efficiency.
Despite headwinds, the company maintained that structural reforms and cost controls will support stability through 2025.
