Ricoh recorded a robust year-on-year sales increase of 16.4% to ¥534.6 billion ($A5.7bn) in the first quarter of fiscal 2023 (April 1 – June 30, 2023), with gross profit up 13% to ¥190.1 billion ($A2bn).
Ricoh’s new IP CW2200 digital colour wide format plotter launched in March 2023
“Although concerns about the spread of COVID-19 and shortages of parts due to disruptions in global supply chains have improved, the global economy slowed down gradually due to the prolonged global inflation and the rise in policy interest rates,” Ricoh told investors. “During the first quarter of this fiscal year, Japan's social and economic activities were normalized as a result of the category shift of COVID-19 to Class 5 infectious diseases, and increased demand for inbound.
“On the other hand, the future uncertainty continued due to soaring raw material and energy prices and yen depreciation. In the U.S., despite continued inflation, the economy remained firm against a backdrop of a favourable employment environment. Europe is experiencing a slowdown in its economic recovery due to the prolonged Russia/Ukraine situation, ongoing inflation and other factors. In other regions, economic recovery continued due to the normalization of economic activity, including the lifting of the zero-covid policies in China.
“Sales for the first quarter increased by 16.4% as compared to the previous corresponding period, to ¥534.6 billion. Sales increased mainly in the office service business due to the relaxation of restrictions on supplying our products and merchandise experienced the first quarter of the previous fiscal year, the acquisitions in Europe and the Americas, and other factors.
“Gross profit increased by 13.2% as compared to the previous corresponding period, to ¥190.1 billion. Profit increased due to yen depreciation as well as the expansion of the office services business and increased sales of edge devices in the office printing business due to the relaxation of supply shortages. Operating profit increased by ¥0.5 billion compared to the previous corresponding period, to ¥10.1 billion.”
Review by Business Segment
Digital Services
Digital Services sales were ¥427.3 billion and increased by 15.9% as compared to the previous corresponding period. In the office services business, sales of the Scrum series in Japan continued to grow due to the expansion of back-office DX sales and progress was made in acquiring projects in the manufacturing and other industries through Scrum Asset, which offers proposals by industry mainly to mid-sized companies. In addition, the number of subscribers to RICOH kintone plus, a cloud-based business improvement platform developed jointly with Cybozu, Inc., also grew steadily.
Digital Products (Production and OEM of MFPs (multifunctional printers), laser printers, digital duplicators, wide format printers, facsimile machine, network equipment, and related parts & supplies, production and sales of scanners, related parts & supplies and electronic components)
Digital Products sales were ¥21.3 billion and increased by 198.3% (Sales including intersegment sales were ¥116.7 billion and increased by 13.4%) as compared to the previous corresponding period. Revenue increased due to the recovery in production of A4 MFPs and the acquisition of PFU.
Despite increased sales and efforts to improve profits by continuing structural reforms in production and development, Digital Products operating profit was ¥0.9 billion and decreased by ¥11.0 billion as compared to the previous corresponding period, mainly due to a decline in sales caused by production adjustments for relatively high-value-added A3 MFPs.
Graphic Communications (Production and sales of cut sheet printers, continuous feed printers, inkjet heads, imaging systems, industrial printers, related parts & supplies, services, support and software)
Graphic Communications sales were ¥56.6 billion and increased by 9.1% as compared to the previous corresponding period. In the commercial printing business, sales of production printers continued to grow in Europe and the Americas. Non-hardware sales were also robust, exceeding the level before the spread of the COVID-19. In the industrial printing business, sales increased as sales of inkjet head increased against the background of increased demand. Despite a temporary increase in expenses due to structural reforms, Graphic Communications operating profit was ¥2.7 billion and increased by ¥0.2 billion as compared to the previous corresponding period.
Industrial Solutions (Production and sales of thermal paper and thermal media, industrial optical component/module and precision mechanical component)
Industrial Solutions sales were ¥23.1 billion and decreased by 14.3% as compared to the previous corresponding period. In the thermal media business, sales declined in Europe and the Americas due to inventory adjustments by customers. In the industrial products business, sales of optical products declined due to the end of special demand for projectors. Despite efforts to secure profits through pricing controls and cost reductions, Industrial Solutions operating profit (loss) was ¥1.2 billion (loss). (Operating profit (loss) was ¥0.5 billion (loss) in the previous corresponding period.)
