Canon Releases 2023 Financial Results
Canon recently released its annual report of its financial results for the fiscal year 2023.
Although after the pandemic, parts shortage and logistical constraints were resolved, demands remained weak, influenced by factors such as high interest rates, economic slowdown in China, and geopolitical risks. Consequently, customers deferred purchases, while dealers opted to reduce their inventory levels.
In the printing industry, intensified price competition among competitors ensued as supply shortages eased. However, demand for office multifunctional devices remained robust. Moreover, stabilizing prices for parts and distribution costs, coupled with the depreciation of the JPY, significantly benefited Canon, resulting in net sales second only to the 2007 record and marking the company’s third consecutive year of profit growth.
For the full year of 2023, Canon achieved a 3.7% increase in net sales, totaling JPY ￥4,181 billion (US $28.17 billion).
Canon’s printing business, a cornerstone of its operations, witnessed an expansion in production and a 3.2% growth in net sales, reaching JPY ￥2,346.1 billion (US $15.8 billion).
The notable growth was primarily driven by sales of cut-sheet printers and large-format printers, notably the imagePRESS V series and Colorado M series. Additionally, multifunctional devices, essential for office environments, experienced a significant uptick in sales. On the contrary, sales of laser and inkjet printers for homes began to shrink in China and Europe due to economic downturn. Nonetheless, the overall profitability of the printing business remained unaffected and even increased.
Canon expects a slower growth rate for the ongoing year given the uncertainty of political and economic factors. Despite these challenges, Canon plans to expand its market share by increasing sales of office multifunctional devices and printers.
Canon forecasts a 4% rise in total net sales for the upcoming year. Specifically, in the printing business, the company aims to enhance product image quality and productivity in response to customer feedback. Expanding sales through international exhibitions will also be a key focus. Overall, a 1.8% increase in net sales for the printing business is expected.
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