Profits Soar for Toshiba Tec’s First Quarter on Strong Revenue Growth

Toshiba Tec today reported results for its first quarter, which consisted of the three months that ended on June 30, 2024.

In a nutshell, results were excellent – including for copier/MFPs – with net revenue, operating profit, ordinary profit, and net income all surpassing that for the first quarter last year. Toshiba Tec’s Retail business also improved from the previous year, and the Workplace business increased net revenue and operating profit.

First-quarter net sales were ¥140.2 billion ($952.12 million), up 14.5 percent year-over-year; operating profit was ¥4.27 billion ($28.99 million), up 232.2 percent year-over-year; and net income was ¥3.44 billion ($23.36 million), versus ¥38.00 million ($258 thousand) for the first quarter a year ago.

The company said profit soared due mainly to increased sales of point-of-sale (POS) systems for the Japan market, increased sales of MFPs, and the positive impact of foreign-exchange rates. On the profit front, profitability of MFPs increased significantly, and there was improvement in profit and loss for POS systems for the Japan market.

Workplace Solutions Business Group

The Workplace Solutions business markets MFPs for domestic and overseas markets, auto ID systems for overseas markets, inkjet heads for domestic and overseas markets, and related products.

Toshiba Tec said that amid a severe business environment marked by declining print volumes due to work style reforms, digital transformation (DX), and intensifying competition continues, Workplace Solutions focused on strengthening the profitability of core businesses and worked on developing the MFP solutions business, auto ID solutions business, and customer support business.

Profit for MFPs increased due to the impact of favorable foreign-exchange rates in addition to strong sales in all regions, reflecting a recovery from product-supply disruptions.

First-quarter net sales for the Workplace Solutions business were ¥62.88 billion ($427.03 million), up 15 percent year-over-year. Operating profit for the business group soared to ¥4.37 billion ($29.67 million), up 107 percent year-over-year, due to the increase in net revenue resulting from recovery from product-supply disruptions, as well as from higher selling prices, and other factors

Retail Solutions Business Group

Toshiba’s Retail Solutions business markets POS systems for domestic and overseas markets, auto ID systems for domestic market, and related products.

First-quarter net sales for the Retail Solutions business were ¥78.56 billion ($533.51 million), up 14 percent year-over-year. On the other hand, operating loss was ¥94 million ($638 thousand), versus an operating loss of ¥828 million ($5.62 million) for the first quarter a year ago. Although POS systems for overseas markets remained in the red, revenue improved in Japan.

Forecast

Toshiba Tec increased its forecast for net revenue for its fiscal year that will end on March 31, 2025.

The company is forecasting net revenue of ¥565.00 billion ($3.83 billion), up 3.1 percent year-over-year; operating profit of ¥18.00 billion ($122.32 million), up 13.5 percent year-over-year; and net income of ¥20.00 billion ($135.92 million), versus a loss of ¥13.74 billion ($93.31 million) for the previous year.  

More Resources

• July 2024: Ricoh-Toshiba Tec Joint Venture ETRIA Now Established
• May 2024: Mixed Results for Toshiba Tec, But Office MFPs See Strong Growth
• February 2024: Toshiba Tec Reports Losses, Lowers Forecast
• November 2023: Strong Financial Results for Toshiba Tec as Workplace Business Solutions’ Profit Soars