Epson Releases Financial Results for Q3

Epson Releases Financial Results for Q3

Epson recently released its financial results for the third quarter ending March 2024. Printing solutions profit sharply increased primarily due to office and home inkjet printer ink sales growth, commercial and industrial inkjet printer sales growth, and lower transportation and other manufacturing costs.

Overall Financial Overview

During the third quarter, the overall revenue amounted to JPY ￥353.3 billion (US $2.38 billion) , exhibiting a marginal decrease of 2.1% compared to the same period in 2022. However, there were slight increments in both profit before tax and operating activities. This positive trend can be attributed to the reduction in foreign exchange losses as compared to the preceding year.

Printing Solutions Sector Performance

The printing solutions sector contributed JPY ￥251 billion (US $1.69 billion) in revenue, registering a notable increase of JPY ￥9.6 billion (US $64.7 million) in segment profit.

Regarding office and home printing,

• Profit in the office and home printing segment witnessed a significant surge, attributed to elevated ink sales and decreased transport costs, facilitated by a revision in ocean freight rates.
• Sale of ink cartridges experienced a downturn in comparison to 2022 when constraints on supplies were alleviated.
• Large-capacity printer models gained popularity in developed countries, offsetting sales decreases in countries like China due to economic slowdown, resulting in a consistent sales volume compared to 2022
• The revenue of inkjet printer ink observed a 6% rise, driven by an increase in large-capacity tank printers and office shared printers.
• The introduction of middle-speed models, coupled with the increase in ink sales, fueled the sales of office shared inkjet printers.

Despite not meeting the target, sales of inkjet printers for small office/home office (SOHO) and home scenarios were compensated by higher prices. Efficient cost control and increased ink sales collectively contributed to the successful realization of revenue plans.

Future Projections 

• Unit sales forecasts for office and home printers have been revised downwards, while keeping price decline in check is expected.
• The overall revenue projection has been adjusted upwards, reflecting Epson’s confidence in the remarkable sales performance of large-capacity ink bottles.
• Ink sales for office shared printers are expected to proceed as planned, while printer sales are subject to ongoing observation and potential revision.

Based on the conclusions above, although revenue for office and home printing is adjusted downwards, the overall revenue forecast has been revised upwards to account for cost reductions.

Related:

• Epson Revenue Declines in Q2
• Epson Reports Mixed Results for Q1
• Epson Awarded for Corporate Governance
• Epson Introduces New Photo Printer

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