Epson releases third quarter results
February 2, 2024
Revenue was ¥353.5 billion ($2.41 billion/ €2.21 billion), down ¥7.7 billion ($52 million/ €48 million) year-on-year and business profit was ¥29.8 billion ($203 million/ €187 million), a decline of ¥1.3 billion ($8.9 million/ €8 million), due to the decline in revenue.
Epson’s third quarter results show a significant increase in profits, particularly from the printing solutions segment.
This growth was driven by increased sales in office and home inkjet printers, commercial and industrial inkjet sales, and reductions in transportation and manufacturing costs. However, the microdevice segment faced challenges, with sales impacted by market inventory adjustments.
The financial summary for the printing solutions sector indicates stable overall revenue year-on-year at ¥251.0 billion ($1.7 billion/ €1.6 billion), with a notable increase in segment profit by ¥9.6 billion ($65.5 million/ €60.2 million) to ¥36.9 billion ($251.8 million/ €231.3 million).
Both office and home printing revenues remained constant compared to the previous year.
Inkjet printer hardware revenue declined due to a drop in sales of ink cartridge printers, attributed to the easing of supply constraints from the prior year.
High-capacity ink tank printer unit sales stayed consistent with the previous year, although there was a decrease in sales in emerging markets due to the economic slowdown in China among other reasons. Conversely, sales in developed markets saw an increase due to higher product recognition.
Ink sales for inkjet printers rose by 6% thanks to foreign exchange effects, an increased printer base, and higher sales of high-capacity ink bottles and office shared inkjet printer ink.
Office shared inkjet printer revenue grew, driven by increased ink sales and the introduction of new medium-speed models.
The office and home printing business profit saw a significant rise primarily because of higher ink sales and reduced transportation costs, thanks to lower ocean freight rates.
Although unit sales of SOHO and home inkjet printers didn’t meet expectations, revenue matched forecasts due to higher selling prices. Business profit surpassed projections due to ink sales growth and effective cost management.
The company adjusted its full-year financial outlook due to the global economic stagnation, lowering the revenue forecast by ¥30.0 billion ($205 million/ €188 million) to ¥1,330.0 billion ($9.1 billion/ €8.3 billion) and the business profit outlook by ¥5.0 billion ($34.1 million/ €31.3 million) to ¥75.0 billion ($511.7 million/ €470.2 million).
Additionally, a forecast of approximately ¥5.0 billion ($34.1 million/ €31.3 million) in other operating expenses related to a pension buyout at a group company in the UK was noted.
Categories : City News
Tags : Business Epson Financials Inkjet Sales
