Despite supply problems because of component shortages and logistics disruptions, Epson recorded ¥268.4 billion ($A3.12bn) in total Q2 revenue, with profit up ¥15.1 billion ($A175m) to ¥25.4 billion ($A296m). Commercial and Industrial printing revenue and profit showed “significant growth.”
|Epson SureColor series printers|
“Q2 revenue and profit increased YoY as markets progressively recovered from the effects of COVID-19,” Epson said. But revenue “fell short of the internal plan, mainly due to product supply constraints resulting from component shortages and logistics disruptions. Business profit exceeded the plan due to pricing measures we took to reflect the balance of supply and demand and increases in parts and transportation costs, and also because of cost containment measures.
“Component shortages and logistics disruptions have become even worse recently, forcing us to further factor supply constraints into the outlook,” the company said.
“There are also some clouds gathering in China and other parts of the global economy. Given this situation, Epson will continue to adjust prices and contain costs in the second half, while steadily spending and investing in areas for growth.”
Commercial and Industrial printing revenue and profit also showed significant growth, said Epson.
“In Commercial and Industrial IJP, we benefited from a market recovery. Sales of finished products grew steadily thanks to a stronger line-up following the launch of new products, especially in growth businesses such as corporate, signage, textiles, and labels.
“The printhead business also saw growth due to increased adoption of Epson printheads, especially in the Chinese market.
“POS printer demand is recovering as retailers and restaurants resume investing, but revenue was limited by supply constraints.”
|Epson SurePress L-6534W label press is one example of Epson's push into industrial printing|