Konica Minolta Reports Q3 Growth Amid Structural Reforms

Konica Minolta Reports Q3 Growth Amid Structural Reforms

Konica Minolta has released its financial performance for the third quarter of fiscal year 2024, covering the period from October 1 to December 31, 2024. The company continued to navigate restructuring efforts while facing challenges in certain business segments.

For the first nine months of fiscal year 2024, Konica Minolta reported total revenue of JPY 831.8 billion (USD 5.5 billion), marking a 3% increase compared to the same period last year. Despite the revenue growth, the company recorded a business contribution profit of JPY 28.8 billion (USD 190 million), a 59% improvement year-over-year. However, operating profit fell to JPY -18.5 billion (USD -122 million), largely due to impairment losses in the sensing and optical components businesses.

The company also reported a net loss of JPY 13.4 billion (USD 88 million), impacted by continued high finance costs and tax expenses. Structural reforms, including the transfer of shares in its Precision Medicine business and workforce reductions, progressed ahead of schedule, contributing to overall cost containment.

Digital Workplace Segment Performance

The Digital Workplace segment, which includes office printing and managed IT services, remained stable. Revenue for the segment reached JPY 458.5 billion (USD 3 billion), reflecting a modest 2% year-on-year increase. Despite a decline in A3 MFP sales, hardware revenue remained resilient, supported by cost-control measures and production efficiencies.

Non-hardware revenue, including consumables and services, experienced mixed performance. While sales grew in China and India, revenues declined in Japan, the U.S., and Europe. The company continued efforts to streamline its offerings within this unit, leading to a reduction in losses from its DW-DX (Digital Workplace Digital Transformation) business.

Professional and Production Print

Konica Minolta’s Professional Print segment reported revenue of JPY 207.6 billion (USD 1.37 billion), up 9% year-on-year. Production print sales remained strong, particularly in India, while industrial print sales showed steady growth due to increased demand for inkjet solutions. However, profit margins remained under pressure due to structural reform expenses and ongoing market fluctuations.

Konica Minolta expects continued progress in its transformation initiatives, including cost reductions and business realignments. With plans to enhance profitability in the Digital Workplace segment and drive growth in professional print, Konica Minolta aims to stabilize its financial performance as it moves into fiscal year 2025.

Related:

• Konica Minolta Demonstrates Steady Growth in 2024 Q2
• Konica Minolta to Transfer Production Site in Wuxi China
• Konica Minolta Releases 2024 Q1 Results
• Konica Minolta & Fujifilm Sign Joint Venture Agreement
• Konica Minolta and Fujifilm Explore Potential Collaboration

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