Brother Reports Growth in Q1

Brother Reports Growth in Q1

According to Brother, both its profit and revenue increased in the first quarter (Q1) ended June 30, due mainly to strong performance of the Printing & Solutions and Machinery businesses in addition to positive FX effects.

In Q1, the OEM’s sales revenue increased 30.7% year-over-year to 174.0 billion yen (US$1.60 billion). Business segment profit increased 203.5% year-over-year to 26.2 billion yen (US$240.10 million). Operating profit turned out to be 26.5 billion yen (US$242.84 million), up 185.7% comparing to the same period last year.

By segment, sales revenue in Printing & Solutions increased 16.1 billion yen (US$147.53 million) to 99.1 billion yen (US$908.10 million), while business segment profit increased 7 billion yen (US$64.13 million) to 16.4 billion yen (US$150.27 million). Operating profit for the segment increased 6.2 billion yen (US$56.81 million) to 16.3 billion yen (US$149.37 million).

“All businesses were firm and, due in part to positive FX effects, recorded a substantial increase in revenue from Q1 fiscal year 2020,” said the spokesman of the company.

Brother reveals that the main factors for changes in sales revenue include:

• Revenue increased despite the impact of supply restrictions as demand for small-size All-in-One and printers targeted at people working from home remained strong and the performance of consumables was firm
• Although the environment remained harsh, revenue increased from the previous year, which was significantly affected by COVID-19
• For both Coding & Marking and Digital Printing, hardware and consumables maintained momentum

Brother also claimed that profit increased substantially due to increased gross profit in the machinery business and higher average unit price in the Printing& Solutions business, in addition to positive FX effects.

In response to positive FX effects and strong performance for Q1, the OEM has revised upward the results outlook.

Related:

• Brother Reports Mixed Results for FY 2020
• Brother Reports Growth in Q3

• Brother Continues to Decline in Q2 and First Half
• Brother Reports Decline in Q1

Comment:

Please leave your comments below for the story “Brother Reports Growth in Q1”