Konica Minolta Adjusts Target Downwards for FY2024

Konica Minolta Adjusts Target Downwards for FY2024

Konica Minolta recently made an announcement that it would adjust its consolidated forecasts for fiscal year 2024, mainly due to the completion of several major management reforms.

In the current period, the company scale down its revenue forecasts by JPY 9 billion (USD 62.6 million), and adjusted its business contribution profit upward by JPY 1 billion (USD 7.0 million) due to favorable performance of Business Technologies Business.

Operating profit has been revised greatly as a result of share transfer as part of the management reforms. At current stage, Konica Minolta has reached agreements to complete two business divestment. The Konica Minolta Marketing will be traded to ADM Group as Indicia Worldwide, which is expected to cause an operating loss of JPY 9.8 billion (USD 68.2 million). Another operating loss of JPY 10.4 billion (USD 72.4 million) is predicted as the result of sales of Mobotix, the German IoT video systems company, to Certina Software Investments.

Other adjustments include impairment losses of JPY 22 billion (USD 15.3 million) resulting from the impairment testing in accordance with IFRS (International Financial Reporting Standards), and a decline of JPY 38 billion (USD 26.44 million) in profit attributable to owners of the company, mainly caused by the decrease in operating profit and reversal of deferred tax assets.

Konica Minolta’s current priority is to return to a highly profitable company, as mapped out in its Medium-term Business Plan. In addition to the management reforms mentioned above, the company has taken other measures to improve business profitability, including a personnel optimization. In its original global structural reforms plan, Konica Minolta planned to reduce 2,391 headcounts, and another 310 as additional measures, totaling to a number of 2,701 employees.

Related:

• Konica Minolta Reports Q3 Growth Amid Structural Reforms
• Konica Minolta Demonstrates Steady Growth in 2024 Q2
• Konica Minolta to Transfer Production Site in Wuxi China
• Konica Minolta Releases 2024 Q1 Results
• Konica Minolta & Fujifilm Sign Joint Venture Agreement

Comment:

Please leave your comment below about the news: Konica Minolta Adjusts Target Downwards for FY2024.