Epson Reports Mixed Results for Q3

Epson Reports Mixed Results for Q3

According to Epson, its revenue increased 6.2% year-over-year to JP¥296.1 billion (US$2.6 billion) in the third quarter ended December 31, 2021 (Q3, 2021) due to market recovery from COVID and the capture of sustained at-home print demand. However, business profit decreased 12.7% year-over-year to JP¥27.2 billion (US$236.1 million), due to soaring materials and logistics costs.

Some highlights include:

• Profit for the period attributable to owners of the parent company was JP¥25 billion (US$217.0 million), up 55.8% year-over-year.
• Profit from operating activities was JP¥30.3 billion(US$263.0 million), up 23.3% year-over-year.
• JP¥2.1 billion (US$18.2 million) tax return at an overseas affiliate under other operating income in Q3.
• Total assets were JP¥1,203.8 billion (US$10.4 billion), up JP¥42.5 billion (US$368.9 million) compared to the end of the last fiscal year.

“Foreign exchange rates had a JP¥16.8 billion (US$145.8 million) positive effect on revenue and a JP¥3.2 billion (US$27.8 million) positive effect on business profit, but our financial results were significantly impacted by supply constraints and higher materials and logistics costs, ” said the spokesman of Epson.

In the Printing Solutions segment, revenue was JP¥205.3 billion (US$1.8 billion), up 5.1% from the same period last year. Segment profit was JP¥30.8 billion (US$267.3 million), down 23.2% year-over-year. Office and home printing revenue increased 3.8% year-over-year to JP¥150.3 billion (US$1.3 billion), but profit decreased 25.3% year-over-year, due to soaring materials and logistics costs and a decrease in ink cartridges.

Epson claimed that business profit in Q3 exceeded the internal plan. Epson lowered the fourth-quarter forecast by about JP¥2 billion (US$17.4 million) after cautiously factoring in risks including a further worsening of supply constraints due to semiconductor and other parts shortages, higher logistics costs resulting from air transport used mainly to deliver B2B orders and ocean freight cost increases, and other changes in the business environment.

Epson also lowered the revenue outlook in office and home printing on the assumption that supply will become further constrained in office and home inkjet and SIDM printers. “We raised the business profit outlook despite the increase in logistics costs because we anticipate higher inkjet printer pricing,” said the spokesman of Epson.

Related:

• Epson Releases Two New Label Printers
• Epson Releases Two New Supertank Color MFPs
• Epson Released New EcoTank Printers
• Epson Releases Two New Cartridge Free Premium EcoTank Models
• Epson Releases New Wide-format Printers

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