Japanese group boosts Q1 profit despite flat global revenues; segment outlooks show strength in products and printing, weakness in European services.
Ricoh has reported a 23.8% rise in profit for the first quarter of fiscal 2025, despite flat revenue growth and ongoing pressures in key overseas markets. The Tokyo-based imaging and services firm posted a net profit attributable to owners of the parent of ¥9.6 billion ($66 million /€60 million) for the three months ending 30 June, up from ¥7.7 billion a year earlier.
Revenue rose 1.1% year-on-year to ¥580.7 billion ($4.01 billion /€3.66 billion), driven by improved hardware sales in Japan and continued cost control efforts. Operating profit nearly doubled to ¥12.6 billion ($87 million /€79 million), up from ¥6.3 billion in the same period last year, thanks to gains from Ricoh’s Corporate Value Improvement Project and increased efficiency in production and logistics.
Segment performance was mixed. The Digital Products business posted a 12% sales gain to ¥136.6 billion, with operating profit more than doubling to ¥12.1 billion. Strong scanner demand and cost savings at ETRIA, its manufacturing joint venture with Toshiba Tec, supported the result.
The Graphic Communications unit, covering commercial and industrial printing, saw sales fall 5.8% to ¥65.1 billion, while operating profit declined to ¥3.5 billion. The company cited weaker investment appetite in the Americas and softer industrial demand in China linked to U.S. tariff concerns.
Ricoh’s Digital Services segment, which includes office services and solutions, saw a slight dip in sales to ¥443.3 billion, down 1.5%. Operating profit held steady at ¥1.0 billion. While recurring revenues grew 2%, European operations were hit by concerns about an economic slowdown and delayed IT spending.
Regionally, sales in Japan jumped 14.1% to ¥224.6 billion ($1.55 billion /€1.42 billion), offsetting declines of 6.0% in the Americas and 6.4% in EMEA.
However, several headwinds remain. Ricoh’s Graphic Communications and Industrial Solutions segments both recorded lower sales, with the latter shrinking 14.7% and posting another quarterly loss. Inventory levels rose again, reaching ¥322.8 billion ($2.23 billion /€2.03 billion), and cash and equivalents dropped 17% to ¥146.2 billion ($1.01 billion /€922 million) amid supply chain adjustments. Meanwhile, recurring revenue growth slowed from double-digit gains seen in previous quarters to just 2%, and Digital Services’ profitability remains marginal, with operating profit still below 0.3% of revenue.
Despite these challenges, Ricoh maintained its full-year forecast. Revenue is projected to reach ¥2.56 trillion ($17.7 billion /€16.1 billion), with net profit climbing to ¥56 billion ($388 million /€353 million). Shareholders are expected to receive a dividend of ¥40 per share.
