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Strong Financial Results for Toshiba Tec as Workplace Business Solutions’ Profit Soars

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Toshiba Tec of Japan today reported financial results for its second quarter and the first half of its fiscal year, with both ending on September 30th.

Net sales were up for both periods, but operating profit was down for both periods. The good news was profit was up for the first half, which consisted of the first and second quarters.

The big news though was the continuing trend of very strong sales and profit for Toshiba Tec copier/MFPs. In the first half, operating profit for the Workplace Solution business – which includes MFPs – was up 361 percent  year-over-year, and the firm said MFP product supply continues to improve, with sales up in the Americas and Europe.

Second Quarter

Second-quarter net sales were ¥141.3 billion ($931.87 million), up 4.74 percent year-over-year, and operating profit was ¥4.6 billion ($30.37 million), down 20.69 percent year-over-year.

First Half

First-half net sales were ¥263.64 billion ($1.73 billion), up 8.1 percent year-over-year; operating profit was ¥5.91 billion ($39.01 million), down 0.8 percent year-over-year; and profit was ¥2.16 billion ($14.26 million) versus a loss of ¥6.3 billion ($41.63 million) for the first half last year.

Toshiba Tec said sales were up due mainly to increased sales of point-of-sales (POS) systems for the Japan market and sales of copier/MFPs, as well as due to favorable foreign-currency exchange rates. 

The firm also noted that the profitability of MFPs improved significantly, while profitability of POS systems for the domestic market improved to a lesser extent.

Workplace Solutions Business Group

The Workplace Solutions Business Group handles MFPs for domestic and overseas markets, auto ID systems for overseas markets, inkjet print heads for domestic and overseas markets, and related products.

Toshiba Tec said that amid a decline in office print volumes due to post-COVID-19 work style reforms, office digital-transformation promotions, and intensifying competition with competition, this business group focused on increasing its basic earnings.

At the same time, it also worked on developing the auto ID business, document and data solutions, and its customer-support business in order to expand business in growth areas.

Sales of MFPs increased due to the impact of foreign exchange rates, in addition to strong sales in the Americas, Europe, and other regions, reflecting a recovery from product supply disruptions, as well as increased selling prices.

Sales of auto ID systems for overseas markets declined as a result of decreased sales in the Americas, Europe, Asia, and other overseas regions.

Sales of inkjet print heads decreased due mainly to decreased sales to overseas customers.

As a result, net sales for the Workplace Solutions Business Group were ¥116.36 billion ($767.90 million), up 16 percent year-over-year. Operating profit for the business group soared to ¥5.01 billion ($33.07 million), up 361 percent year-over-year due to the increase in net sales resulting from recovery from product-supply disruptions, higher selling prices, and structural reforms. 

Retail Solutions Business Group

Net sales for the Retail Solutions Business Group were ¥149.63  billion ($987.46 million), up 3 percent year-over-year.. Operating profit was ¥899 million ($5.94 million), down 82 percent year-over-year, reflecting the deterioration in profit and loss in overseas markets due to a decrease in sales of POS systems and an increase in research expenses.

Forecast

For its fiscal year that will end on March 31, 2024, Toshiba Tec increased its forecast for net sales

For the year, Toshiba Tec is forecasting net sales of ¥540 billion ($3.56 billion), up 5.7 percent year-over-year; operating profit of ¥18 billion ($118.84 million), up 11.9 percent year-over-year; and profit of ¥7.0 billion ($46.21 million), versus a loss for the previous year.

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