Epson Revenue Declines in Q2
Epson reported revenue of JPY ¥323.6 billion (US$2.2 billion) in the second quarter of the fiscal year 2023 (Q2, 2023) ending March 2024, down JPY¥11.5 billion (US$76.9 million) year on year. Business profit turned out to be JPY¥8.8 billion (US$58.8 million), down JPY¥18.0 billion (US$120.3 million).
“Revenue fell short of the internal plan on which the previous outlook was based, because sales of office and home inkjet printers and projectors ended below forecast. Business profit fell short about JPY¥10 billion (US$66.8 million) primarily because of an increase in write-downs on slow moving stock associated with the shortfall in sales,” said Epson.
By segment, printing solutions generated JPY¥222.1 billion (US$1.48 billion) in revenue, up JPY¥6.6 billion (US$44.1 million) year on year. Segment profit was JPY¥15.0 billion (US$100.3 million), down JPY¥3.6 billion (US$24.1 million) year on year.
In office & home printing, revenue increased but profit decreased. Inkjet printer hardware revenue increased, helped by foreign exchange effects. Ink revenue increased by 5%.
Office shared printer revenue increased as a result of an easing of hardware supply constraints, growth in sales of new products in the medium-speed zone, and increased ink sales.
Despite revenue growth, business profit in office and home printing decreased mainly because of an increase in SG&A expenses as business activities ramped back up to normal levels.
Epson anticipated JPY¥80 billion (US$534.6 million) in profit for the whole fiscal year 2023 as a result of having revised the foreign exchange loss forecast.
In printing solutions, Epson revised the outlook for revenue to JPY¥940 billion (US$6.3 billion) and for segment profit to JPY¥98 billion (US$654.9 million).
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