Konica Minolta Holdings Q1 revenue declines 28%

All KM’s major segments saw revenue drop in Q1, FY2020-21

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The Konica Minolta Accurio Jet KM1 inkjet production press Photo Konica Minolta
The Konica Minolta Accurio Jet KM1 inkjet production press Photo Konica Minolta

Konica Minolta Holdings’ quarterly revenue during the April-June quarter fell 28% year-on-year to 173 billion yen (Rs 12,270 crore). “Affected by the lockdown in Europe and the US, office and professional print, which account for a little under 70% of sales in Europe and the US, as well as bio-healthcare, which accounts for almost all sales in the US, saw revenue greatly reduced,” the company said.

The office business segment recorded a revenue of 93.9 billion yen, a decrease of 30.2% year-on-year. The operating loss was 7.5 billion yen compared with an operating profit of 7.6 billion yen for the same period in the previous fiscal year.

The professional print business segment recorded revenue of 31.7 billion yen, a decrease of 37.2% year-on-year. The operating loss was 7 billion yen compared with an operating profit of 1 billion yen for the same period last year.

June pick-up for professional print

Unit sales of both color and monochrome models in June increased significantly over April-May. The year-on-year decrease was also somewhat improved. (April down 47%, May down 51%, June down 43%). Despite reductions, KM-1 demand is returning among mid-size and large printing companies, and KM-1e sales have begun. Label and embellishment printing equipment are also showing increases, the company said.

Operating loss during the current period was 22.6 billion yen compared with an operating profit of 0.6 billion yen in the same period last year. Due to the uncertainties created by the coronavirus pandemic, the company said no earnings forecast would be provided for FY2020-21, ending 31 March 2021, at this point. 

The Covid-19 pandemic led to the country-wide lockdown on 25 March 2020. It will be two years tomorrow as I write this. What have we learned in this time? Maybe the meaning of resilience since small companies like us have had to rely on our resources and the forbearance of our employees as we have struggled to produce our trade platforms.

The print and packaging industries have been fortunate, although the commercial printing industry is still to recover. We have learned more about the digital transformation that affects commercial printing and packaging. Ultimately digital will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future.

Web analytics show that we now have readership in North America and Europe amongst the 90 countries where our five platforms reach. Our traffic which more than doubled in 2020, has at times gone up by another 50% in 2021. And advertising which had fallen to pieces in 2020 and 2021, has started its return since January 2022.

As the economy approaches real growth with unevenness and shortages a given, we are looking forward to the PrintPack India exhibition in Greater Noida. We are again appointed to produce the Show Daily on all five days of the show from 26 to 30 May 2022.

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