Konica Minolta faces profit woes
July 31, 2024
The company struggles with deficits despite revenue growth, driven by inefficiencies and market challenges in key segments.
Konica Minolta reported robust revenue growth for Q1 FY2024, ending 30 June 2024, achieving ¥286.2 billion (€1.83 billion/ $2.02 billion), up 7% year-on-year. The company’s increased revenue was partly attributed to favourable foreign exchange rates.
However, profitability remains a challenge, with operating profit registering a deficit of ¥0.4 billion (€2.56 million/ $2.82 million), albeit an improvement from the ¥4.4 billion (€28.15 million/ $31.05 million) deficit the previous year.
The Professional Print Business showed notable progress, with revenue increasing by 12% to ¥67.6 billion (€433.22 million/ $477.34 million). This growth was driven by a surge in the sales of digital inkjet presses and the overall expansion of digital printing operations. Despite this, the segment’s profit margin improvement remains modest due to substantial restructuring costs.
The Digital Workplace Business also performed well, with revenue rising by 6% to ¥152 billion (€974.81 million/ $1.07 billion). The office hardware segment saw stable unit sales, while the digital workplace transformation (DW-DX) services experienced a narrowing deficit thanks to higher gross profits and controlled SG&A expenses.
Konica Minolta’s medicine and performance materials showed mixed results. Precision medicine revenues increased by 11%, benefiting from Invicro’s equity transfer. Conversely, the healthcare and sensing sectors underperformed.
Despite these gains, the company’s profit attributable to owners saw a small loss of ¥3.5 billion (€22.39 million/ $24.69 million), down from ¥5.6 billion (€35.81 million/ $39.50 million) the previous year.
Konica Minolta’s forward-looking strategy includes a recently announced joint venture with Fujifilm to streamline procurement processes, further strengthening its business foundations amidst a challenging market landscape.
Categories : City News
Tags : Business Financials FY2024 Konica Minolta OEM Q1
