Canon Reports Record High Sales Amid Profit Pressures

Canon Reports Record High Sales Amid Profit Pressures

For fiscal year 2024, Canon posted record annual sales of JPY 4.51 trillion (USD 28.5 billion), a 7.9% year-on-year increase, surpassing its previous peak before the 2008 financial crisis. However, net income fell 39.5% to JPY 160 billion (USD 1.01 billion) following a JPY 165.1 billion (USD 1.04 billion) write-down related to its medical business.

Printing remained Canon’s largest business segment, with revenue rising 7.5% to JPY 2.52 trillion (USD 15.95 billion). The segment’s operating profit surged 27%, bringing margins up to 11.5%. While commercial and office printing performed well, inkjet printers faced challenges due to slowing demand in China and pricing pressures in lower-end markets.

Canon reported continued expansion in its commercial printing segment, marking the fourth consecutive year of growth. Demand was bolstered by a strong showing at the Drupa trade fair and the introduction of new products. In office printing, multifunction devices (MFDs) saw steady demand, and laser printer shipments rebounded significantly after an extended period of inventory corrections. Canon also noted a 2% uptick in refillable ink tank printer sales, reflecting a shift in consumer preferences toward cost-efficient, sustainable printing solutions.

Looking ahead, Canon expects its printing segment to continue growing in 2025, forecasting a 1.4% revenue increase to JPY 2.56 trillion (USD 16.2 billion) with an improved operating margin of 12.7%. Growth drivers include the expansion of commercial and label printing, the launch of new MFD models, and a strategic collaboration with Heidelberg to strengthen its presence in the offset printing market.

Laser printer sales, which experienced a significant boost in 2024 due to OEM restocking, are expected to normalize in 2025 as pandemic-driven demand stabilizes. However, Canon remains optimistic about prospects in medium- and high-speed color printing.

Canon’s strategy for the coming year focuses on leveraging innovations in commercial printing and strengthening cost efficiency to navigate economic uncertainties in key markets such as China and Europe. The company remains confident in the long-term digital transformation of print, despite ongoing pressures in the consumer segment.

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