Epson reported strong revenue and profit growth in its second quarter financial results, despite “skyrocketing” materials and logistics costs. Epson’s Q2 revenue of ¥335.2bn was up ¥66.8bn or 25% on the previous year, with ¥23.7bn in profit for the period (up ¥4.7bn).
Epson announced last month it will build a new printhead factory to triple production (Artist's impression).
“Second-quarter results were negatively impacted by ongoing supply constraints associated with semiconductor shortages and by skyrocketing materials and logistics costs compared to the same period last year,” Epson said.
“Even so, we recorded both revenue and profit growth largely due to dynamic pricing of products in accordance with the balance between supply and demand and as a result of the weaker yen.
“Revenue, business profit, and profit for the period received positive impacts from exchange rate volatility.”
Commercial & Industrial Printing
- Sales expanded in the growth areas of the commercial and industrial IJP finished products business, but growth was limited due to the cooling of the Chinese market and product supply constraints.
- Printhead sales business revenue grew, with strong interest from Chinese printer manufacturers that also export.
- Small printers and other revenue increased due to strong demand from the retail and food service industries and the easing of supply constraints.
- Business profit declined due to customer ink procurement adjustments in the photo segment, continued spending on finished products business expansion, and soaring material and logistics costs.
Outlook
"We have factored into the current full-year financial outlook a downward revision of unit sales due to slower than expected easing of supply constraints and a further deceleration of the Chinese market versus the previous outlook, but we are reiterating the business profit outlook, as we will continue to dynamically price products and to control costs."
