Epson Reports Mixed Results in Q4
Epson revenue suffered a decline of 4.6% year-over-year to ¥995.9 billion (US$9.15 billion), while business profit increased 50.9% year on year to ¥61.6 billion (US$565.96 million) in the fourth quarter of the fiscal year 2020 (Q4, 2020) ended March 21.
In specific, profit from operating activities was ¥47.6 billion (US$437.33 million), up 20.7% year on year. Profit before tax was ¥44.9 billion (US$412.53 million), up 13.1% year on year. And profit for the period attributable to owners of the parent company was ¥30.9 billion (US$283.90 million), up 299.9% year on year.
Epson claimed that even though the decrease in revenue had a significant negative impact on business profit, a rise in at-home print demand drove sales of inkjet printers and consumables higher.
Profit also rose because Epson immediately began cutting costs across the Epson Group in reaction to the spread of COVID-19.
In the printing solutions segment, revenue in the printing solutions segment was ¥707.7 billion (US$6.50 billion), down 0.1% year on year. Segment profit was ¥108.5 billion (US$996.86 million), up 43.5% year on year.
In the meantime, Epson also released its full-year financial results for the fiscal year 2020.
Boosted by at-home printing demand but hurt in the first half by COVID-19, Epson revenue down ¥47.6 billion (US$437.33 million) year over year to ¥995.9 billion. Business profit increased ¥20.7 billion (US$190.19 million) year over year to ¥61.6 billion (US$565.96 million), due to increased ink sales on sustained at-home print demand and rise in selling prices and reduced costs.
In outlook, Epson predicts that the full-year financial results for the Fiscal year 2021 will up ¥74.0 billion (US$679.89 million) year over year to ¥1070.0 billion (US$9.83 billion). As for business profit, Epson predicts that it will reduce ¥1.6 billion (US$14.7 million) to ¥60.0 billion (US$551.26 million). Epson expects profit in many businesses will increase, but office and home printing will decrease as at-home print demand subsides.
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