Konica Minolta reports profit surge despite sales decline in Q1

Published 31/07/2025, 12:38
Konica Minolta reports profit surge despite sales decline in Q1

Investing.com -- Konica Minolta reported a significant profit increase in its first quarter despite lower sales, as structural reforms and cost-cutting measures boosted the bottom line.

The company posted sales of ¥251.2 billion for the quarter, down 8.2% year-over-year, with a 4% decline when excluding foreign exchange effects. The Japanese yen’s appreciation reduced sales by approximately ¥12 billion.

Business contribution profit surged 411% to ¥9.2 billion, representing a ¥7.4 billion increase from the same period last year. Excluding forex effects, profit improved by ¥9.2 billion, as currency fluctuations had a negative ¥1.8 billion impact on operating profit.

The profit figure exceeded the company’s internal estimates by ¥1-2 billion and significantly outperformed market expectations of ¥4.0 billion in operating profit.

Cost-saving measures from structural reforms contributed ¥5.7 billion to the profit improvement, while reductions in other selling, general and administrative expenses added ¥8.6 billion. These gains helped offset a ¥4.2 billion negative impact from lower sales and a ¥1.6 billion increase in labor costs.

By segment, the Digital Workplace business recorded sales of ¥138.9 billion, down 9% year-over-year (4% excluding forex effects), with both hardware and non-hardware sales declining 4%. Despite lower sales, the segment’s business contribution profit increased by ¥600 million to ¥7.4 billion, driven by structural reforms and SG&A expense reductions.

The Professional Print business reported flat sales of ¥64.3 billion when excluding currency effects, with business contribution profit decreasing by ¥400 million to ¥1.4 billion. The Industry business saw sales decline 5% to ¥28.7 billion, while business contribution profit increased by ¥500 million to ¥4.3 billion.

Konica Minolta also revised its estimate of tariff impact for the fiscal year from ¥16.0 billion to ¥14.0 billion, noting it can offset this pressure through price adjustments, SG&A expense reductions, and favorable changes in foreign exchange assumptions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.