Ricoh Q1 Profit Doubles on Office Services Growth

Ricoh Q1 Profit Doubles on Office Services Growth

Ricoh Co., Ltd. reported a modest increase in sales for the first quarter of fiscal 2025, supported by growth in its office services business and contributions from ETRIA Co., Ltd., the joint venture with Toshiba Tec Corporation launched in July 2024, despite weakness in overseas printing markets.

Sales for the quarter rose 1.1% year-on-year (4.4% excluding currency effects) to ¥580.7 billion (US$3.92 billion). In Japan, sales climbed 14.1%, driven by higher office printing hardware shipments, expanded IT service offerings, and product deliveries from ETRIA to Toshiba Tec. Overseas sales fell 5.7% overall, with declines in the Americas, Europe, the Middle East, and Africa reflecting weaker office printing demand and the impact of yen appreciation.

Gross profit was largely unchanged at ¥207.3 billion (US$1.40 billion), as gains from higher domestic hardware sales and office services were offset by foreign exchange headwinds. Selling, general and administrative expenses fell 2.3% to ¥196.9 billion (US$1.33 billion), aided by prior structural reforms. Operating profit doubled from a year earlier to ¥12.6 billion (US$85.0 million).

In the Digital Services segment, sales slipped 1.5% to ¥443.3 billion (US$2.99 billion). Office services revenue in Japan increased, boosted by demand for security solutions, workstyle reform services, and PC replacement-related support, while the number of subscribers to the “RICOH kintone plus” cloud platform grew significantly. Office printing hardware sales improved thanks to higher volumes and stricter pricing controls, but non-hardware sales declined, particularly overseas.

Ricoh maintained its full-year forecasts, noting that while U.S. tariff-related costs are now expected to rise, the impact should be mitigated by strong first-quarter performance, favorable currency conditions, and planned pricing strategies.

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