Epson Profits Increased in Q3

Epson Profits Increased in Q3

Epson reported growth in its third-quarter (Q3) financial results for the fiscal year 2020 ending March 2021.

According to Epson, its business profit turned out to be JPY 31.1 billion (US$295.70 million) in Q3, up 13.5% year-over-year. Epson claims that business profit was significantly higher than expected. The main factors that drive the growth include expansion of strategic products and increased ink sales which thanks to sustained at-home print demand and maintenance of selling prices. In addition, tightly contained costs also contributed to the growth.

Profit for the period was registered to be JPY 16.0 billion (US$152.13 million), up JPY 3.7 billion (US$35.18 million) year-over-year. The OEM claims that the increase in business profit resulted in an increase in every profit category. Another factor for the growth to come is that a JPY 3.6 billion (US$34.23 million) impairment loss was recorded under other operating expenses in the wearable products business.

While enjoying growth, Epson also experienced a slight decline in revenue. Due to slumped demand caused by COVID-19, demand is rebounding to varying extents, depending on region and product. Meanwhile, Epson pointed out that supply continued to fall short of demand due to suspended factory operation in Indonesia in September and disrupted logistics. In Q3, Epson revenue turned out to be JPY 278.8 billion (US$2.65 billion), down 1% year-over-year.

However, Epson claims that revenue in Q3 still exceeded expectations due to the continued at-home print demand for inkjet printer ink, stable printer prices, and increased demand for robotics solutions and microdevices.

Looking at the business segment, printing solutions revenue reached JPY 199.0 billion (US$1.89 billion), up 6.1% year-over-year. Printers alone saw an increase of 10.4% year-over-year in revenue in Q3. Printing solutions profit increased 15.4% year-over-year to JPY 40.5 billion in the period.

Related:

• Epson Sales Rebounds Back in Q2

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