Ricoh profit hit despite sales surge
February 14, 2025
Yen weakness and office services growth bolster revenue as printing division struggles.
Ricoh reported a decline in profit despite an 8.1% rise in revenue to ¥1.83 trillion ($12.2 billion/ €11.3 billion) for the nine months to the end of December 2024, as restructuring costs and weakening office printer sales weighed on the Japanese technology group.
The Tokyo-listed company’s operating profit fell 7% to ¥34.5 billion ($230 million/ €213 million), with net profit attributable to shareholders dropping 8% to ¥27.8 billion ($185 million / €172 million). Ricoh cited a “decline in sales of the office printing business” and one-off expenses linked to restructuring under its “Corporate Value Improvement Project.”
Sales in its Digital Services segment, which includes office printing and IT services, rose 4.3% to ¥1.4 trillion ($9.35 billion/ €8.67 billion), driven by demand for IT services in Japan and the launch of its “Scrum” business solutions platform. However, office printer sales disappointed, particularly in overseas markets.
Ricoh’s Digital Products unit, which manufactures printers and related hardware, delivered a standout performance, with sales surging 58.7% to ¥109.9 billion ($735 million/ €682 million). This recovery followed a return to normal production levels after supply chain disruptions in the previous year, alongside a boost from Ricoh’s joint venture with Toshiba Tec, ETRIA Co. Ltd.
Restructuring charges, including a voluntary retirement programme and realignment of its overseas sales teams, led to a 9.1% increase in selling, general and administrative expenses to ¥619.4 billion ($4.21 billion/ €3.84 billion).
Ricoh maintained its full-year profit forecast of ¥44.5 billion ($297 million/ €276 million), but warned that “uncertainties” remained due to global geopolitical tensions and slow recovery in key markets.
Categories : City News
Tags : Financials Printers Profit Restructuring Ricoh
