Konica Minolta hit by impairment losses
February 6, 2025
Konica Minolta has posted a significant operating loss of ¥18.5 billion ($125 million/ €115 million) in its third-quarter results, as hefty impairment charges on its sensing and optical components divisions overshadowed stable revenue growth in its office and production print units.
The Japanese imaging and technology group reported a 3% year-on-year increase in revenue to ¥831.8 billion ($5.6 billion/ €5.2 billion), driven by improved profitability in its office print segment and a robust performance in professional print. However, a ¥29.1 billion ($197 million/ €182 million) impairment charge, mainly tied to goodwill write-downs in the sensing and optical divisions, weighed heavily on overall profitability.
In response, Konica Minolta has accelerated its global restructuring efforts, which include business divestitures and cost reductions. The company completed the sale of Ambry Genetics and revised an equity transfer agreement for its optical components unit. Despite these measures, the group posted a net loss of ¥13.4 billion ($91 million/ €84 million) for the quarter, as finance costs and tax expenses continued to erode earnings.
The Digital Workplace segment, covering office printing, grew 2% year-on-year, benefiting from cost efficiencies and yen depreciation. Production print revenue expanded 9%, with steady demand in mid- and high-production printers offsetting weakness in the U.S. and European markets. However, industrial print remained a concern, with losses persisting due to declining sales in label, embellishment, and textile printing.
Konica Minolta’s restructuring efforts are expected to continue into 2025, as it seeks to improve financial stability and reposition its business mix. The group has reaffirmed its full-year revenue forecast of ¥1.13 trillion ($7.6 billion/ €7.2 billion), but profitability remains under pressure as it navigates shifting market dynamics and the impact of its restructuring programme.
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