Japanese group posts turnaround as cost cuts and share sales boost bottom line.
Konica Minolta delivered a marked turnaround in its first-quarter earnings, posting an operating profit of ¥10.1 billion ($70 million/ €65 million), reversing a ¥1.8 billion ($12.5 million/ €11.6 million) loss a year earlier. The Japanese imaging and printing group credited the rebound to aggressive cost-cutting, improved gross margins, and gains from selling shares in Tempus AI.
Total revenue fell 8% year-on-year to ¥251.2 billion ($1.74 billion/ €1.61 billion), weighed down by currency headwinds and softer demand in its core business segments.
Konica Minolta’s office printing segment, part of its Digital Workplace business, faced a challenging quarter with revenue falling by ¥10.6 billion ($73 million/ €67 million) year-on-year, primarily due to declining hardware and non-hardware sales across Japan, Europe, the US, and China. Hardware demand weakened especially for externally branded products, while non-hardware services such as maintenance and consumables saw slower uptake. Despite the revenue contraction, business contribution profit improved modestly, rising to ¥7.4 billion ($51 million/ €47 million), supported by structural reform efforts, cost reductions in production, and SG&A efficiencies.
The company warned of ongoing pressure from US reciprocal tariffs but maintained its full-year operating profit.
