Canon Releases 2024 Q1 Financial Results

Canon Releases 2024 Q1 Financial Results

Canon has released its financial results for the first quarter of 2024, ending on March 31.

Net sales experienced a marginal uptick of 1.8%, reaching JPY￥ 988.5 billion (USD$ 6.42 billion). The quarter presented notable challenges, particularly in the inkjet and laser printer markets. This was largely attributed to a global economic slowdown, leading to postponed purchases and inventory reductions. However, the significant depreciation of Japanese yen has exerted a positive effect, partially offsetting the adversity.

Gross profit saw a rise thanks to cost-cutting activities implemented after the end of the pandemic. However, expense surged greatly, primarily as a result of increases in labor costs and Japanese yen conversion amounts.

In the printing segment, despite noticeable contractions of markets in China and Europe, the overall sales managed to be secured, with an increase of 2.2% to JPY￥ 580.3 billion (USD$ 3.77 billion). This growth was buoyed by improved performance in commercial printing equipment and non-hardware markets, which were expanding over time.

While the first quarter witnessed subdued sales due to heavy market inventory, Canon anticipates accelerated growth from the second quarter as the situation normalizes. However, with global conditions still uncertain due to geopolitical tensions, the outlook for 2024 remains cautious, aligning with the previous year. Canon aims to make steady progress, achieve a double-digit operating profit ratio, and continue its trend of sales and profit growth for the fourth consecutive year.

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