Konica Minolta Reports Profitable Fiscal Year

Konica Minolta of Japan today released results for its 2018 fiscal year that ended on March 31, 2019.

Revenue was ¥1,059.1 billion, an increase of 2.7 percent year-over-year.

Operating profit was ¥62.4 billion, an increase of 16.0 percent year-over-year. There was an increase in operating profit in both the Office Business and the Professional Print Business, which led to a year-over-year increase in profit overall.

Profit before tax came in at ¥60.1 billion, an increase of 22.4 percent year-over-year, while profit attributable to owners of the company amounted to ¥41.7 billion, an increase of 29.3 percent year-over-year.

Office Business Group

The Office Business group’s revenue was up, due to higher sales of color copier/MFPs – primarily sales of high-speed color models – along with revenue contributions from the company’s IT services solutions. Revenue was ¥587.8 billion, up 0.7 versus the previous fiscal year, while operating profit was ¥47.1 billion, up 5.1 percent versus the previous fiscal year.

For Konica Minolta’s fourth quarter that ended on March 31, 2019, the Office Business group reported revenue of ¥151.3 billion, down 3.1 percent, and operating income of ¥12.8 billion, down 14.2 percent.

Professional Print Business

The Professional Print Business posted growth in revenue, reflecting higher sales of digital printing systems, mainly both color and monochrome high-speed models. There was also higher sales for the industrial printing business unit, which is positioned as a growth business for Konica Minolta. Revenue for the group was ¥227.7 billion, up 6.3 percent, while operating profit was ¥13.8 billion, up 49.2 percent, with both versus the previous fiscal year.

Konica Minolta reported that sales of its AccurioJet KM-1 “increased significantly,” while sales of label printers and digital decoration printing equipment made by MGI “achieved the highest market share in the targeted markets.”

For Konica Minolta’s fourth quarter, the group reported revenue of ¥62.6 billion, up 5.8 percent, and operating profit of ¥5.1 billion, up 21.3 percent, with both year-over-year.

Healthcare Business

In the Healthcare Business, the discontinuation of sales of certain purchased products led to a year-over-year decrease in revenue. Revenue was ¥90.9 billion, down 5.8 percent, while operating profit was ¥2.3 billion, down 57.0 percent, with both versus the previous fiscal year.

For Konica Minolta’s fourth quarter, the group revenue of ¥29.8 billion, up 0.7 percent, and operating profit of ¥1.2 billion, down 28.0 percent, with both year-over-year.

Industrial Business

Revenue for the Industrial Business remained at the same level as in the
previous fiscal year, with higher sales in the performance materials business unit and the inkjet component business unit offsetting a decline in revenue due to slowing demand for products in the  measuring instruments unit.

Revenue for the Industrial Business group was ¥116.7 billion, down 1.3 percent, and operating profit was ¥20.9 percent, down 10.7 percent, with both versus the previous fiscal year.

For Konica Minolta’s fourth quarter, revenue was ¥28.2 billion, up 0.5 percent, and operating profit was ¥3.8 billion, down 33.4 percent, with both year-over-year.

Medium Term Business Plan

Under its Medium Term Business Plan, Konica Minolta states it will be focusing on:

  • “High value-added services appropriate to an Internet of Things (IoT) era in which things are connected to other things.”
  • “Full-scale promotion of digitization in commercial and industrial printing.”
  • Full-scale entry into the area of precision medicine

Forecast

For its current fiscal year that will end on March 31, 2020, Konica Minolta is forecasting revenue of ¥1,120.0 billion, versus the previous fiscal year’s ¥1,059.1 billion; operating profit of ¥66.0 billion, versus the previous fiscal year’s ¥62.4 billion; and ¥45.5 billion in profits, versus the previous fiscal year’s ¥41.7 billion.

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