Ricoh Reveals Results for Fiscal Year 2020

Ricoh Reveals Results for Fiscal Year 2020

For fiscal year 2020 ended March 31, 2021, Ricoh reported operating loss of ¥45.4 billion (US$ 416.93 million), (effectively loss of ¥10.8 billion (US$ 99.18 million)), while loss attributable to owners of the parent turned out to be ¥32.7 billion (US$300.3 million), down ¥72.2 billion(US$663.05 million) from a year earlier. Ricoh also reported it generated ¥99.1 billion (US&910.09 million) in earnings.

Some other highlights from the fiscal year 2020 results include:

• Consolidated sales decreased 16.3% from a year earlier to ¥1,682.0 billion (US$15.45 billion).
• Gross profit down 20.7% to ¥572.3 billion (US$5.26 billion).
• Selling, general and administrative expenses decreased 5.9%, to ¥619.7 billion (US$5.70 billion).
• Income tax expenses were down ¥39.8 billion (US$365.50 million) from a year earlier, owing to the decrease of profit (loss) before income tax expenses.
• Comprehensive income increased 89.9% to ¥22.0 billion (US$202.04 million).

By segment:

Office Printing

• sales were down 19.5% to ¥815.8 billion (US$7.49 billion) in fiscal 2020. Sales of hardware and related consumables were off owing to the pandemic, with lockdowns and other restrictions causing sales and deliveries to slump, while print volumes were down amid declining office attendance rates, particularly in Europe and the Americas.
• Operating profit plunged from ¥82.5 billion (US$757.64 million) a year earlier, to ¥6.7 billion (US$61.53 million). This was despite progress in streamlining operations to lower costs. Key downside factors were a drop in gross profit from reduced sales and expenditure on measures to permanently reinforce the corporate structure. Another factor was the absence of one-time gains posted in the previous year.

Office Service

• sales decreased 4.5%, to ¥532.3 billion (US$4.89 billion). Although sales were up for IT services and applications, including packaged solutions, sales were down for IT hardware in the absence of the previous year’s demand associated with transitions to Windows 10.
• Operating profit was ¥35.4 billion (US$325.10 million), from ¥32.6 billion (US$299.38 million) a year earlier. This stemmed from progress in improving profitability by expanding sales of solutions packages.
• Operating margin rose from 5.9% to 6.7%, as the OEM progressed steadily in transforming from primarily an office equipment manufacturer into a digital services company.

Commercial Printing

• Sales fell 24.5%, to ¥134.6 billion (US$1.24 billion).
• Operating loss was ¥14.6 billion (US$134.08 billion), down from ¥21.6 billion (US$198.36 million) a year earlier. This loss reflected gross profit downturn from lower sales of transaction printer-related consumables and other products and an impairment loss on development and other fixed assets. After excluding the impairment loss, operating profit would have been ¥11.8 billion (US$108.37 million).

Industrial Printing

• Sales increased 7.3% to ¥24.6 billion (US$225.92 million). Sales of inkjet printheads to customers in the Europe and the Americas were down owing to the pandemic. Offsetting that impact were a recovery in sales of inkjet printheads in the key Chinese market and higher U.S. sales of industrial printers.
• Operating loss of ¥1.6 billion (US$14.69 million) for the year because of increased product development spending to drive business growth.
• The profit improved by ¥3.7 billion (US$33.98 million) from the previous term, reflecting a return to profitability in the fourth quarter.

Overall, the OEM claimed it achieved structural reforms and business growth in office services. For gearing up, it has prepared to change to business unit structure and strengthened self-motivated employees.

In the fourth quarter, the OEM generated ¥13.3 billion (US$122.14 million) in operating profit by strengthening structural reforms and business growth.

Related:

• Ricoh continues to Suffer Losses in Q3
• Ricoh Results Hit by COVID-19

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