Konica Minolta Holdings Q1 revenue declines 28%

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

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. 

2023 promises an interesting ride for print in India

Indian Printer and Publisher founded in 1979 is the oldest B2B trade publication in the multi-platform and multi-channel IPPGroup. While the print and packaging industries have been resilient in the past 33 months since the pandemic lockdown of 25 March 2020, the commercial printing and newspaper industries have yet to recover their pre-Covid trajectory.

The fragmented commercial printing industry faces substantial challenges as does the newspaper industry. While digital short-run printing and the signage industry seem to be recovering a bit faster, ultimately their growth will also be moderated by the progress of the overall economy. On the other hand book printing exports are doing well but they too face several supply-chain and logistics challenges.

The price of publication papers including newsprint has been high in the past year while availability is diminished by several mills shutting down their publication paper and newsprint machines in the past four years. Indian paper mills are also exporting many types of paper and have raised prices for Indian printers. To some extent, this has helped in the recovery of the digital printing industry with its on-demand short-run and low-wastage paradigm.

Ultimately digital print and other digital channels 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. For instance, there is no alternative to a rise in textbook consumption but this segment will only reach normality in the next financial year beginning on 1 April 2023.

Thus while the new normal is a moving target and many commercial printers look to diversification, we believe that our target audiences may shift and change. Like them, we will also have to adapt with agility to keep up with their business and technical information needs.

Our 2023 media kit is ready, and it is the right time to take stock and reconnect with your potential markets and customers. Print is the glue for the growth of liberal education, new industry, and an emerging economy. We seek your participation in what promises to be an interesting ride.

– Naresh Khanna

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