Brother continues downward trend
February 5, 2020
The company has released its consolidated third quarter results of FY2019 recording a year-on-year reduction in revenue of 6.6%.
Looking at the consolidated results for the third quarter of FY2019, Brother’s sales revenue was down ¥11.7 billion ($106.66 million/ €96.75 million), or 6.6% year?on?year, to ¥166.4 billion ($1.51 billion/ €1.37 billion).
Brother explained that in the Printing & Solutions (P&S) business, despite the economic slowdown in China and the decline in demand following the hike in consumption tax in the Japanese market, sales revenue remained virtually flat from the previous year.
Sales revenue in the P&S business in the third quarter was ¥103.9 billion ($947.18 million/ €859.21 million), which Brother calls “virtually flat”, down just 0.2% year?on?year. Lower prices in some countries for ink tank models and colour laser printers contributed to a ¥2.3 billion ($20.96 million/ €19.02 million) decrease in profit, however Brother recorded higher consumable sales.
Sales in the third quarter of FY2019 were 3% down for laser printer hardware but a positive 3% growth for consumables year-on-year. Brother explained that sales of laser printer hardware were down mainly because of a fall in sales of black?and?white laser printers as a consequence of a slump in demand caused by the economic slowdown in China, as well as a decrease in super?low?end black?and?white printers with low profitability in accordance with policy.
For inkjet printer hardware sales revenue was 4% down year-on-year. The sales revenue growth rate for inkjet consumables was 5% down. In developed countries, hardware sales of both A4 conventional cartridge types and models with high capacity cartridges known in Japan as First Tank were firm. While sales of ink tank models remained firm in emerging countries, overall sales decreased due, in part, to the impact of falling prices in some countries and downturn demand in Japan following the hike in consumption tax. The sales revenue growth for consumables decreased due to the impact of lower sales in Europe and the US compared to the previous year.
Categories : City News
Tags : Brother Business Financials OEM
