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Printer sales help drive Ricoh to H1 profit of ¥23bn

Ricoh’s Graphic Communications unit sales increased by 25% to ¥108.8 billion, with commercial printing business sales rising as economic activities recovered from Covid-related restrictions. “Despite the impact of material shortages, sales of production printers increased as we worked to secure production volumes,” Ricoh said.

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Ricoh’s total gross profit for the first half of fiscal 2022 (April 1 – Sept 30, 2022) increased by 13.6% compared to the previous corresponding period, to ¥346.2 billion. Operating profit increased by ¥10.3 billion compared to the previous period, to ¥23.4 billion.

“The world economy resumed its economic activities compared to the previous corresponding period, when had been greatly affected by the expansion of COVID-19 infection,” Ricoh said. 

“On the other hand, prices have been rising and inflation is accelerating due to ongoing shortage of materials and the prolonged Russia/Ukraine situation, and growth slowed as a result of tight monetary policy. 

“During this period, the number of people infected with COVID-19 temporarily reached a record high in Japan. However, the number of people infected subsequently decreased and economic activities resumed. On the other hand, prices have been rising due to higher raw material prices and the depreciation of the yen.

In the U.S., prices and wages have been rising amid negative GDP growth, and the monetary authorities have been taking tightening policy to control inflation. In Europe, due to the prolonged Russia/Ukraine situation and the deterioration of relations with Russia, price increases have spread to a wide range of items due to the soaring energy and food prices, and the impact on the economy is becoming apparent. In other regions, in China, the zero-COVID policy against the spread of COVID-19 infections led to lockdown in Shanghai and other cities, caused economic activity to stagnate and economic growth to slow down.”

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 Review by Business Segment

Digital Services

Digital Services sales were ¥768.2 billion and increased by 11.6% (an increase of 3.5% excluding foreign currency exchange fluctuations) as compared to the previous corresponding period. In the office services business, sales of ICT-based products and related services in Japan were impacted by a shortage of parts and materials

Digital Products

Digital Products sales were ¥8.5 billion and increased by 20.1% (an increase of 3.7% excluding foreign currency exchange fluctuations) as compared to the previous corresponding period. Sales including intersegment sales were ¥212.4 billion and increased by 18.9%. Although production activities were affected by a shortage of materials and lockdown in Shanghai, sales increased due to increased production of A3 MFPs and parts & supplies compared to the previous corresponding period by flexible production measures. 

Graphic Communications

Graphic Communications sales were ¥108.8 billion and increased by 25.1% (an increase of 10.7% excluding foreign currency exchange fluctuations) as compared to the previous corresponding period. 

“In the commercial printing business, sales increased as economic activities recovered in Europe and Americas. Despite the impact of material shortages, sales of production printers increased as we worked to secure production volumes, including procuring alternative components from the market. Sales of non-hardware continued to recover, and it recovered to the level before the spread of COVID-19 infection. 

“In the industrial printing business, sales increased due to strong sales of components such as inkjet heads and textile printers, despite the impact of lockdown in the mainstay Chinese market. In the commercial printing business, although costs rose and profits were squeezed by procuring alternative components from the market to secure production volumes, improvements in development, production, and service activities and the depreciation of the yen contributed to generate profit. As a result, Graphic Communications operating profit was ¥3.8 billion and increased by ¥3.5 billion as compared to the previous corresponding period.

 Industrial Solutions

Industrial Solutions sales were ¥62.4 billion and increased by 23.1% (an increase of 13.9% excluding foreign currency exchange fluctuations) as compared to the previous corresponding period. In the thermal media business, we implemented flexible pricing controls, including price pass-through, in response to cost increases for raw materials, transportation costs, etc. In addition, increased sales of release paper-free labels and expanded demand in the U.S. logistics industry led to higher sales. In the industrial products business, the impact of production reduction by automobile-related customers continued due to lockdown in China. In the electronics business, demand for industrial robots was strong, and sales remained steady, despite a continuing shortage of materials.

In September, Australia’s largest printer IVE Group chose Ricoh Australia as its preferred digital print partner, installing six Ricoh Pro C9210 digital production presses and two Ricoh Pro C7210X models.

 https://www.ricoh.com.au