Ricoh sees Q1 sales surge, profit falls
August 7, 2024
Ricoh reports strong sales growth in Q1 but faces declining profits amid operational challenges.
Ricoh Company, Ltd. has announced its consolidated financial results for the first quarter ended June 30, 2024, reporting consolidated sales of ¥574.3 billion (€3.42 billion/ $3.67 billion) for Q1 FY2024, reflecting a 7.4% increase from the same period last year.
This growth was driven by strong performances both domestically and overseas. Domestic sales rose by 2.6% to ¥196.8 billion (€1.17 billion/ $1.26 billion), while overseas markets saw a more significant uptick, with sales climbing 10.2% to ¥377.4 billion (€2.25 billion/ $2.41 billion).
Gross profit for the quarter stood at ¥207.1 billion (€1.23 billion/ $1.32 billion), marking an 8.9% year-on-year rise. The gross profit margin improved to 36.1%, up from 35.6% in the same quarter last year.
Despite the robust sales growth, Ricoh’s operating profit experienced a sharp decline of 37.7%, falling to ¥6.3 billion (€37.5 million/ $40.3 million). The operating profit margin also contracted to 1.1%, down from 1.9% in the previous year.
Profit before income tax expenses dropped by 26.2% to ¥9.8 billion (€58.3 million/ $62.6 million), while profit attributable to owners of the parent fell by 11.3% to ¥7.7 billion (€45.8 million/ $49.2 million). Earnings per share (basic) decreased to ¥13.03 (€0.08/ $0.08) from ¥14.44.
Printer segment performance
The printer segment showed mixed results in Q1 FY2024. Digital product sales, which include printers, reached ¥122.0 billion (€726.8 million/ $779.3 million), marking a year-on-year increase of 4.5%. However, the segment faced challenges in hardware sales, particularly in overseas markets.
In Japan, multifunction printers (MFPs) accounted for 63% of sales, while printers made up 25%, and hardware sales for office printing (MFPs and printers) decreased by 3% year-on-year.
Overseas, MFPs constituted 88% of sales, and printers 9%, and hardware sales for office printing fell by 6% year-on-year, with a forex-adjusted decline of 17%.
Ricoh reported a significant increase in cash flows from operating activities, which increased to ¥55.1 billion (€328.1 million/ $352.3 million) from ¥34.4 billion. Conversely, cash flows from investing activities were negative at -¥23.6 billion (-€140.6 million/ -$150.8 million), though this was an improvement from the previous year’s -¥31.0 billion. Financing activities also reduced outflows, amounting to -¥31.9 billion (-€190.1 million / -$204.0 million).
Ricoh forecasts continued growth for the fiscal year ending March 31, 2025, with expected sales of ¥2,500.0 billion (€14.88 billion/ $16.00 billion). Gross profit is projected to rise by 9.7% to ¥900.0 billion (€5.36 billion/ $5.76 billion), and operating profit is anticipated to increase by 12.9% to ¥70.0 billion (€417.1 million / $448.0 million). Profit before income tax expenses and profit attributable to owners of the parent is expected to reach ¥73.0 billion (€435.0 million/ $467.1 million) and ¥48.0 billion (€285.9 million/ $307.1 million), respectively.
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