Sharp Profit Recovers in Q3 Despite Declining Sales

Sharp Profit Recovers in Q3 Despite Declining Sales

Sharp has released its consolidated financial results for the third quarter of fiscal year 2024, showing an improvement in operating profit despite continued challenges in sales.

The company’s total net sales amounted to JPY 561.5 billion (USD 3.7 billion), down 7.4% year-on-year, reflecting ongoing market challenges and the negative impact of the depreciating yen. However, operating profit saw a significant turnaround, reaching JPY 19.9 billion (USD 132 million), marking an 8.8-fold increase compared to the same period last year. This improvement was primarily attributed to cost reductions, changes in the product mix, and structural reforms in key business segments.

Breaking down performance by segment, the Brand Business, comprising Smart Life & Energy, Smart Office, and Universal Network, recorded total sales of JPY 391.8 billion (USD 2.6 billion), up 11.3% year-on-year. Within this, Smart Office, which includes office solutions such as printers and multifunction devices, generated JPY 163.8 billion (USD 1.1 billion) in sales, reflecting a 9.0% increase year-on-year. The segment’s operating profit remained stable at JPY 9.8 billion (USD 65 million), supported by strong sales of MFPs and an increased focus on high-value-added products in the office solutions category.

In contrast, the Device Business, consisting of Display and Electronic Devices, continued to face difficulties, with total sales declining by 33.0% year-on-year to JPY 176.5 billion (USD 1.2 billion). However, operating losses in this segment narrowed due to structural reforms and cost-cutting measures.

Looking ahead, Sharp has revised its full-year forecast, now expecting net sales of JPY 2,130 billion (USD 14 billion) and an operating profit of JPY 20 billion (USD 133 million). The company remains committed to its strategic transformation, with a focus on profitability and business efficiency improvements.

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