Mixed Bag for Ricoh’s Latest Quarter, First Half

On November 30th, Ricoh Company of Tokyo, Japan, reported results for its second fiscal quarter, and for the first half of its fiscal year.

Second Quarter

For the three months that ended on September 30, 2019, Ricoh reported net sales of ¥517.billion, up 4.1 percent year-over-year; operating profit of ¥21.0 billion, down 34.7 percent year-over-year; and profits of ¥13.6 billion, down 49.1 percent year-over-year.

First Half

For the six-month period that ended on September 30, 2019, Ricoh reported net sales of ¥994.7 billion, up 0.7 percent year-over-year.

Ricoh says the higher sales were due to gains in sales for its Office Services, Commercial Printing, and Industrial Printing groups, which offset declines in sales of office-printing hardware and consumables.

Sales in the Americas were down 3.4 percent year-over-year, due to a decline in sales generated by Ricoh’s Office Printing group. This decline was offset however by higher sales for Ricoh’s Commercial Printing group in the Americas. Sales in Europe, the Middle East, and Africa also declined by 6.7 percent year-over-year.

Operating profit for the first half declined by 6.7 percent year-over-year to ¥48.6 billion.

Profits declined by 18.8 percent year-over-year to ¥46.8 billion. Comprehensive income declined by 92.8 percent year-over-year to ¥4.0 billion.

First-Half Results by Business Group

Ricoh has six business groups: Office Printing, Office Service, Commercial Printing, Industrial Printing, Thermal Media, and Other. Following are results for each group for the first half:

Office Printing – Sales declined by 5.4 percent year-over-year to ¥509.4 billion. Ricoh says that hardware and consumables sales declined because it “focused on more profitable businesses” and because of a lower installed base. Operating profit decreased by 3.3 percent year-over-year to ¥55.3 billion.

Office Service – Sales for this group, which includes business-process and IT solutions, increased by 16.9 percent year-over-year to ¥270.5 billion. Operating profit increased by 115.4 percent year-over-year to ¥13.4 billion.

Commercial Printing – Sales increased by 1.2 percent year-over-year to ¥87.5 billion. Sales of color cut-sheet commercial printers grew mainly in the Americas.

Industrial Printing – Sales increased by 19.8 percent year-over-year to ¥11.7 billion. Ricoh said that while sales of its inkjet industrial print heads increased, it recorded an operating loss of ¥2.0 billion due to increased investment in this segment.

Thermal Media – Sales declined by 4.1 percent year-over-year to ¥31.6 billion, while operating profit declined by 9.9 percent year-over-year to ¥1.5 billion.

Other – Sales declined 5.8 percent to ¥83.8 billion, and operating profit declined 83.5 percent to ¥2.5 billion. Ricoh says the declines reflected an equity method of accounting, as well as the fact that the previous corresponding period a year ago included the sale of Ricoh Logistics System.


For its complete fiscal year that ends in March 2020, Ricoh is forecasting net sales of ¥2,010.0, down 0.2 percent versus the previous fiscal year; operating profit of ¥100.0 billion, up 15.2 percent versus the previous fiscal year; and profits of ¥62.0 billion, up 25.5 percent versus the previous fiscal year.

Our Take

The bad news for Ricoh is lower sales for its office printing group – including lower office MFP/printer hardware sales, lower consumables’ sales, and more troubling, a lower installed MFP base. The good news is that it reported significant sales gains for its Office Service group, which focuses on business and IT solutions, as well as sales for its Commercial and Industrial groups, although more modest.

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