Mimaki posted a “significant” 23% increase in global sales to 18,336 million yen ($207M AUD) for the third quarter of financial year 2022, despite the impact of the Russia-Ukraine crisis and China’s COVID-19 policy.
Mimaki’s JFX600-2513 Flatbed UV-LED
“3Q net sales increased by 3,466 million yen [$39m AUD] compared to the same period of FY2021 (+23%, including +1,683 million yen due to the impact of exchange rates), exceeding the previous forecast,” Mimaki said. "Profit increased by 647 million yen ($7.3m AUD) compared to the same period of FY2021.
“Despite the impact of the sales decline resulting from the Russia-Ukraine crisis and China’s COVID-19 policy, firm demand for the company’s printer units and ink contributed to significant sales growth in all markets: the SG market with an extensive product lineup, the IP market with strong sales of new products, and the TA market with notable recovery demand following COVID-19, especially in emerging countries.
“The overall impact of the ongoing shortage of semiconductors from the first half of the fiscal year has persisted while the longer transportation lead times are gradually being resolved. The yen’s depreciation on foreign exchange had a positive effect, with a significant increase in sales.”
Sales by area:
Asia and Oceania: “While sales in China declined significantly due to the impact of the Zero-COVID policy and the confusion after its lifting, sales increased in most major countries, such as Australia, the Philippines, Thailand, and India. Overall, in addition to strong SG, TA sales expanded significantly, and ink sales were also strong.
Japan: Amid continued economic recovery, sales in the SG, IP, and TA markets increased significantly, and ink sales were also strong.
North America: While the speed of inflation gradually slowed down, IP sales remained strong for both compact and large flatbed printers, SG sales were also strong mainly for mainstay products, sales of ink and spare parts were also strong, and the effect of the yen’s depreciation on foreign exchange contributed positively.
Europe: Although the negative impact of the Russia Ukraine crisis still remains, sales increased in most major countries such as Germany, Italy, the U.K.,and Portugal. Overall, sales of SG and IP increased significantly, TA sales remained firm, ink demand was also solid and the effect of the yen’s depreciation on foreign exchange contributed positively.
Sales by Market Segment
■ SG market: Mainly the mid-range models, the entry-level 100 model series, and cutting plotters such as the CG-AR series were strong, new flagship models were also firm, and ink sales remained strong.
■ IP market: The updates to the lineup of the UJF series of mainstay compact flatbed printers caused main units sales to continue to increase notably, while sales of large flatbed printers performed well and ink sales were also strong.
■ TA market: Sales of main units grew substantially, centring on the entry-level model TS100 in Latin America and Asia, while sales of the mainstay mid-range models were strong, and ink sales also grew significantly.
■ FA business: Sales in relation to PCB inspection equipment, semiconductor production equipment and metal processing remained firm, while sales of FA equipment and PCB mounting equipment decreased.
Forecast (FY2022)
Some difficulties in procuring parts and materials will continue to have an effect to some extent while longer transportation lead times are expected to be resolved.
The previous forecast has been revised downward since we expect a decrease in demand mainly for ink despite our efforts to strengthen product lineup and sales activities. The demand decline is likely to happen as the operation of printers at customer locations may decrease following the economic slowdown in Europe, the U.S., and etc.
Operating profit
No change in outlook regarding impact of higher costs of parts, materials, and energy, etc.
The previous forecast has been revised upward due to the cost of sales ratio expected to improve. Its contributing factors are reviewed selling prices, decreased transportation costs as well as better model mixing. The mixing improvement follows the sales increase from new printer main units with high gross margin. The revision also takes account of the progress up to 3Q.
Full Q3 financial report here.
