Konica Minolta Q1 Profit Driven by Tariff Refund & Currency Gains

Konica Minolta Q1 Profit Driven by Tariff Refund & Currency Gains

Konica Minolta has reported its consolidated financial results for the first quarter of fiscal year 2027, generating modest top-line growth accompanied by a sharp rise in business contribution profit.

Consolidated revenue reached 258.51 billion yen (USD 1.63 billion), representing a 2.9% increase year-on-year, primarily buoyed by foreign exchange tailwinds from a depreciating Japanese yen. Profit attributable to owners of the parent company expanded 6.8% year-on-year to 7.78 billion yen (USD 49.13 million), while basic earnings per share rose to 15.74 yen (USD 0.10).

Gross profit for the three-month period grew 12.5% year-on-year to 124.04 billion yen (USD 783.33 million), supported significantly by a refund related to U.S. tariff expenses recorded in the previous fiscal year. Foreign exchange fluctuations provided additional momentum. Driven by the gross profit expansion, business contribution profit surged 25.8% to 11.56 billion yen (USD 73.00 million).

However, operating profit dipped 4.4% year-on-year to 9.62 billion yen (USD 60.75 million). Operating profitability was further weighed down by 1.14 billion yen (USD 7.20 million) in business structure improvement expenses associated with overseas Digital Workplace and Professional Print operations.

Performance across Konica Minolta’s core operating units was mixed. The Digital Workplace Business logged a 6.8% rise in revenue to 149.13 billion yen (USD 941.83 million), with operating profit climbing 14.9% to 7.75 billion yen (USD 48.94 million). While underlying office hardware sales decreased in North America and China, expanding IT services, corporate digital transformation (DW-DX) solutions in Europe, and in-house AI SaaS offerings in Japan—alongside U.S. tariff refunds—bolstered segment profit.

In the Professional Print Business, revenue fell 9.6% to 58.10 billion yen (USD 366.91 million) due to the prior-year divestment of Konica Minolta Marketing Services. Excluding this structural change, underlying production print revenue expanded on currency benefits and strong hardware shipments in India, while industrial label press sales grew. Operating profit for the segment leaped to 4.02 billion yen (USD 25.39 million) (up from 0.40 billion yen (USD 2.53 million) in Q1 FY2026), driven by tariff refunds and the non-recurrence of subsidiary disposal losses.

Konica Minolta reaffirmed its full-year financial forecasts for the fiscal year ending March 31, 2027. The company projects full-year consolidated revenue of 1,105.00 billion yen (USD 6.98 billion) (up 1.6% YoY), business contribution profit of 56.00 billion yen (USD 353.65 million) (up 5.3% YoY), and operating profit of 50.00 billion yen (USD 315.76 million) (up 0.3% YoY).

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