Epson recorded Q3 revenue of ¥361 billion ($A3.9 billion), up 22% year-on-year, with profit up ¥4bn to ¥31.2bn ($A340 million). The company's Printing Solutions business revenue rose 21% to ¥249 billion ($A2.73 billion) but profit was down due to high material and logistics costs. However, Commercial and Industrial printing segment revenue and profit both increased.
Epson’s SureLab D560 minilab inkjet photo printer, introduced late last year
“Our third-quarter results were negatively impacted by high materials and logistics costs but benefitted from an easing of semiconductor supply constraints compared to the same period last year,” Epson said.
“Despite the challenges, we recorded both revenue and profit growth due in part to higher selling prices and exchange rate volatility.
“The full-year outlook for revenue, business profit, and subsequent levels of profit was lowered on the presumption of a further deceleration of the global economy due to factors such as a cooling of consumer spending in the wake of ongoing inflation and the effects of Covid in China.”
Printing solutions business segment:
Revenue was ¥249.0 billion, up ¥43.7 billion year on year.
Segment profit was ¥27.3billion, down ¥3.5 billion.
“In office & home printing, revenue increased but profit decreased. Inkjet printer unit sales increased by 20% year on year, the result of an easing of supply constraints that allowed us to extend sales of high-capacity ink tank printers as well as ink cartridge printers. Inkjet printer revenue sharply increased as a result of our pricing measures and foreign exchange effects.
“Ink revenue increased by 2%. Although ink cartridge sales declined as at-home print demand returned to normal, increased sales of high-capacity ink bottles and foreign exchange effects pushed total ink revenue higher.
“Office shared inkjet printer revenue increased due to the easing of supply constraints. Business profit in office and home printing declined due to the strong dollar and soaring materials and logistics costs. Revenue fell short of the internal plan due to a shortfall in inkjet printer unit sales, but business profit was in line with the plan thanks to pricing measures and cost control.
Commercial and industrial printing revenue and profit increased
“Revenue in the commercial & industrial inkjet printer finished products business increased, mainly in growth areas, though the increase was tempered by a cooling of markets due to the effects of Covid in China and the postponement of investment by customers in Europe and the Americas,” said Epson. “Foreign exchange effects played a part in the increase.
“Printhead sales business revenue grew, with strong interest from Chinese printer manufacturers that also export. Small printers & other revenue increased in Europe and the Americas due to strong demand from the retail and food service industries and the easing of supply constraints.
“Business profit increased on higher revenue, though it was tempered by soaring materials and logistics costs. Both revenue and business profit were impacted by economic deceleration and fell short of the internal plan.
Financial Outlook
Epson lowered its full-year revenue outlook by ¥60.0 billion and also lowered profit outlook by ¥5.0 billion to ¥95.0 billion.
“Plans for the next fiscal year are still to be formulated, but we hope to increase both revenue and profit again. It is likely that the global economy, and particularly the economic slowdown in China, will have some residual impact on B2B businesses such as commercial & industrial printing and robots. Despite this, with the projected easing of supply constraints, we expect to steadily expand in the growth areas of the commercial & industrial printing and office shared printers businesses by launching new products. We will also continue our efforts to expand sales of high-capacity ink tank printers.”
