Despite mixed results, Epson’s printing solutions segment grew significantly, buoyed by yen depreciation.
Seiko Epson Corporation, the Japanese electronics giant, reported mixed financial results for the quarter ending June 30, 2024. Despite a 6.9% increase in overall revenue to ¥336.6 billion (€2.21 billion/ $2.34 billion), profits were negatively impacted by challenging market conditions and weak semiconductor sales.
The printing solutions division, a core component of Epson’s business, saw its revenue climb to ¥191.5 billion (€1.26 billion/ $1.33 billion), marking an increase of ¥11.5 billion (€75.5 million/ $80 million) from the previous year. Segment profit also rose sharply to ¥21.1 billion (€139 million/ $147 million), reflecting a ¥6.9 billion (€45.5 million/ $48 million) year-on-year increase. This growth was driven mainly by strong sales of high-capacity ink bottles and printheads, particularly in commercial and industrial printing.
Office and home printing revenues increased to ¥125.1 billion (€821 million/ $870 million), aided by a favourable exchange rate and higher unit sales of inkjet printers (IJP). High-capacity ink bottle sales offset the decline in traditional ink cartridges, increasing segment profit to ¥13.2 billion (€86.6 million/ $91.8 million). Commercial and industrial printing revenues reached ¥66.3 billion (€435 million/ $461 million), with printhead sales to Chinese manufacturers showing notable strength.
Epson’s strategic initiatives include building a new inkjet printhead production plant to meet rising demand. Participation in industry events like Drupa further cemented Epson’s position in the commercial printing market.
Epson has revised its full-year outlook upwards for both revenue and profit in the printing solutions segment, anticipating continued benefits from yen depreciation and strong market demand.
