Konica Minolta Improves Profitability in Q1 FY2025

Konica Minolta Improves Profitability in Q1 FY2025

Konica Minolta, Inc. has reported improved profitability in its Q1 FY2025 financial results, bolstered by the company’s ongoing structural reforms and business optimization efforts, even as revenue declined year-on-year.

The company’s consolidated revenue for the first quarter was JP￥251.2 billion (US$ 1.70 billion), down 8% year-on-year. Despite the drop in top-line revenue, business contribution profit rose significantly to JP￥9.2 billion (US$ 62.3 million), representing a 411% year-on-year surge. Tariffs had a minimal impact during the quarter.

The Digital Workplace Business, a core segment for Konica Minolta, generated JP￥138.9 billion (US$ 941.0 million) in revenue, a decline of 9% year-on-year. The decrease stemmed from lower hardware sales—particularly for products under other companies’ brands—and a reduction in non-hardware revenues such as print consumables and services, which saw weaker demand in Japan, Europe, and China.

Regionally, hardware revenue held steady in the U.S. and Europe but declined in China and India. Managed IT services revenue also fell, primarily due to the company’s deliberate business streamlining in the U.S., although Japan showed growth in AI-based SaaS services.

Despite the revenue contraction, the segment’s profitability improved. Business contribution profit rose 9% to JP￥7.4 billion (US$ 50.1 million), thanks to production cost reductions and efficiency improvements. Operating profit jumped 57% year-on-year to JP￥7.1 billion (US$ 48.1 million).

The company maintained its FY2025 forecasts, projecting a lower revenue of JP￥1,050.0 billion (US$ 7.11 billion). However, Konica Minolta expects business contribution profit to grow significantly to JP￥52.5 billion (US$ 355.6 million), and operating profit to reach JP￥48.0 billion (US$ 324.9 million).

The company noted that it has absorbed the effects of reciprocal U.S. tariffs and adjusted for currency changes, particularly the euro, in its outlook. However, free cash flow has been revised downward due to tariff-related impacts.

Related:

• Konica Minolta New Bizhub Breaks Speed Barrier
• Konica Minolta Reports Lower Office Equipment Sales in 2024
• Konica Minolta Adjusts Target Downwards for FY2024
• Konica Minolta Reports Q3 Growth Amid Structural Reforms
• Konica Minolta Demonstrates Steady Growth in 2024 Q2

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