Ricoh Faces Downturn in Office Printing

Ricoh Faces Downturn in Office Printing

The downturn may look scary for some as Ricoh looks to drive its way through unprecedented times—particularly in the office printing sector.

According to Ricoh, sales in its annual report rose in the office service and industrial printing segments, while they were down in the office printing, commercial printing, and thermal segments. The office printing revenue downturn reflected lower hardware and consumables demand due to the COVID-19 pandemic.

In the statement, Ricoh pointed out that it targeted the collaboration services and contents market during the pandemic is expected to grow around 10% annually.

Some highlights include:

• Consolidated sales for fiscal 2019 declined 0.2%, to JPY¥2,008.5 billion (USD$18.73 billion).
• Gross profit decreased by 5.9%, to JPY¥721.5 billion(USD$6.73 billion).
• Operating profit reached JPY¥79.0 billion (USD$736.76 million), down 9.0% from a year earlier
• Selling, general and administrative expenses decreased 6.3%, to JPY¥658.4 billion(USD$6.14 billion).
• profit attributable to owners of the parent was JPY¥39.5 billion (USD$368.38 million), down 20.2% from a year earlier.
• Cash flow is of JPY¥47.8 billion (USD$445.78 million), decreased by JPY¥83.9 billion (USD$782.4 million) from a year earlier.

For the fiscal year 2019 by business segment,

• office printing sales for the year decreased by 7.4%, to JPY¥1,006.2 billion (USD$9.38 billion). Segment operating profit dropped from JPY¥117.9 billion (USD$1.1 billion) posted a year earlier to JPY¥90.3 billion (USD$842.7 million). This was because the pandemic caused sales and gross profit to decrease, offsetting progress in cutting operating expenses on the strength of structural reforms.
• Office Service sales increased by 18.2%, to JPY¥568.9 billion (USD$5.3 billion). Segment operating profit jumped from JPY¥14.7 billion (USD$ 137.1 million) posted a year earlier to JPY¥29.0 billion (USD$270.48 million), as profitability improved with sales expansion.
• Commercial printing sales dropped 3.7%, to JPY¥178.3 billion (USD$1.66 billion). Operating profit was JPY¥23.1 billion (USD$215.45 million), less than the JPY¥27.2 billion (USD$253.7 million) posted a year earlier, owing to lower sales of transactional printer consumables and a gross profit decline.
• Industrial printing sales for the year increased by 11.2%, to JPY¥23.0 billion (USD$214.53 million). Operating loss was JPY¥4.9 billion (USD$45.71 million), down JPY¥2.1 billion (USD$19.6 million) from a year earlier.

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