Canon Q2 earnings surge, OEM ties with HP bolster performance
July 25, 2024
Canon reports robust Q2 growth with €7.591 billion in sales despite opaque details on its financial ties with HP Inc.
Canon Inc. unveiled solid financial results for the second quarter of 2024, with net sales reaching ¥1,167.8 billion, which translates to approximately €7.591 billion or $8.175 billion, a 14.4% increase from the previous year. This growth includes Canon’s sales to HP Inc., although specific details of the financial relationship are not publicly disclosed.
Despite the lack of transparency, The Recycler estimates that up to 40% of Canon’s printer sales revenues could be attributable to its sales to HP Inc. This dependency underscores Canon’s strategic positioning in the printer market, which continues to face increasing challenges. The financial results also highlighted a gross profit of ¥551.6 billion (€3.585 billion or $3.861 billion) and an operating profit increase of 28.3% to ¥118.4 billion (€0.769 billion or $0.829 billion).
Canon’s operational success this quarter was driven by strong sales performance across its portfolio, particularly in cameras, network cameras, and laser printers. The company’s efforts to stimulate demand through new product launches and enhanced marketing have been fruitful, especially in the consumer segments.
Looking ahead, while Canon aims for record sales of ¥4.6 trillion ($30.14 billion/ €27.79 billion) by year-end, the significant reliance on HP Inc. as part of its printer sales highlights a potential vulnerability. As the printer market continues to evolve and presents new challenges, this reliance could impact Canon’s financial stability and growth in the medium to long term.
Canon remains optimistic about its future, focusing on strategic partnerships and innovative practices to navigate a competitive tech landscape. Still, it must also prepare for potential market shifts affecting its core business segments.
Categories : World Focus
Tags : 2024Q2 Business Canon Financials Results
