Brother Reports Q3 Revenue Growth amid Squeezed Printer Margins

Brother Reports Q3 Revenue Growth amid Squeezed Printer Margins

Brother reported higher revenue for the three months to December, supported by favourable foreign exchange movements and strong demand for machine tools, while profitability in its core printing operations remained under pressure amid rising costs and regional weakness.

Revenue for the quarter rose 5.6% year on year to ¥237.3 billion ($1.53 billion), benefiting from currency tailwinds and robust machinery sales. Business segment profit declined 9.1% to ¥23.3 billion ($150 million), reflecting margin pressure across several operations.

Within printing-related businesses, the Printing & Solutions (P&S) division posted modest sales growth, but profitability weakened sharply. Higher promotional spending, elevated parts and logistics costs, and an unfavourable sales mix weighed on margins, with Europe emerging as the main drag. Regional data showed P&S revenue in Europe falling 11.5% year on year, while the Americas, Asia and other regions, and Japan recorded growth of 5.7%, 3.4% and 1.8%, respectively.

Industrial Printing delivered a steadier performance, with revenue increasing year on year and segment profit improving from the previous period, supported by demand for industrial and commercial applications.

By contrast, the machinery business provided a notable offset to printer-related pressure. Machine tool sales rose by more than 50% year on year, lifting both revenue and margins and reinforcing the segment’s role as a short-term earnings stabiliser.

Looking ahead, management maintained its full-year outlook but signalled continued caution around printer profitability. In its FY2025 forecast by business segment, Brother revised expected P&S revenue upward while lowering the division’s operating profit target, indicating that margin pressure is likely to persist despite volume growth.

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• Brother Launches 12 New PRIVIO Series A4 Inkjet Printers
• Brother USA Introduces 8 New Inkjet All-in-One Printers

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