Konica Minolta Returns to Profit in 2025 H1

Konica Minolta Returns to Profit in 2025 H1

Konica Minolta reported a solid turnaround for the first half of fiscal 2025, posting a return to profit on improved efficiency and cost control across its operations, even as revenue declined amid a weaker office market and the company’s continued business portfolio reshaping.

For the six months ended September 30, revenue fell 8% from a year earlier to ¥513.2 billion (US$3.33 billion), but operating profit swung to ¥23.0 billion (US$149 million) from a loss of ¥1.0 billion a year earlier. Profit attributable to owners of the company reached ¥22.6 billion (US$147 million), reversing a ¥10.7 billion loss in the prior-year period.

The company credited its turnaround to structural reform efforts, a leaner business structure, and improved gross margins, which rose 0.9 percentage point to 44.5%.

Digital Workplace, the company’s largest business encompassing office printers and IT services, saw revenue drop 6% to ¥287.8 billion (US$1.87 billion) due to weaker hardware and non-hardware sales in the U.S. and China. Segment business contribution profit edged down to ¥18.2 billion (US$118 million), while operating profit surged 169% to ¥17.7 billion (US$115 million), reflecting lower costs and a turnaround in digital workflow (DW-DX) services.

Professional Print revenue fell 11% to ¥123.8 billion (US$803 million) amid postponed investment by U.S. customers and continued sluggishness in China. Segment profit dropped 43% to ¥2.8 billion (US$18 million) as higher U.S. tariffs and lower hardware demand offset cost savings from restructuring.

Konica Minolta maintained its full-year revenue forecast at ¥1.05 trillion (US$6.81 billion) and operating profit target of ¥48.0 billion (US$311 million). The company slightly raised its business contribution profit outlook to ¥54.0 billion and expects profit attributable to owners of the company to reach ¥24.0 billion for the year ending March 2026.

The company said the impact of U.S. reciprocal tariffs has been largely mitigated through cost adjustments and supply-chain measures. Its forecast assumes an exchange rate of ¥145.5 per U.S. dollar and ¥166.5 per euro for the second half.

Related:

• Konica Minolta Improves Profitability in Q1 FY2025
• 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

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