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Investing.com -- Konica Minolta has updated its financial guidance for the fiscal year ending in March 2025 (FY3/25) and announced its targets for the fiscal year ending in March 2026 (FY3/26).
These changes come as part of the company’s business selectivity and focus initiative that began in FY3/24, and saw the transfer of non-core businesses, including precision medicine, marketing services, and optical components.
The FY3/25 guidance, updated on April 24, lowered the operating income to a loss of ¥54.0bn ($490m) and net income to a loss of ¥38.0bn ($345m). The company booked ¥116bn ($1.05bn) in one-time costs and losses, including ¥19bn in global structural reform costs, ¥28bn in business selectivity and focus costs, and ¥51bn in asset impairment losses. Despite a ¥50bn ($454m) profit from transferring Ambry, a net loss was still incurred.
The company’s business selectivity and focus actions resulted in a reduction of total asset value by ¥190bn ($1.72bn) and the trimming of 2,700 employees, exceeding the initial target of 2,400 employees. The company spent ¥19bn on global structural reforms and expects to save ¥10bn in FY3/25 and an additional ¥14bn in FY3/26.
For FY3/26, Konica Minolta is targeting ¥1,050.0bn ($9.54bn) in sales, which represents a 7% year-on-year decrease. The business contribution profit target is ¥52.5bn ($477m), a 22% increase, while the operating profit target is ¥48.0bn ($436m), an increase of ¥101.0bn ($917m) year-on-year. The company is also aiming for a net profit of ¥24.0bn ($218m), a year-on-year increase of ¥62.0bn ($563m), and a return on equity of 5%.
Konica Minolta plans to restore the dividend to ¥10 for the year and is aiming to achieve values in line with medium-term goals announced in April 2024. The company’s forex rate assumptions are ¥145 per US dollar and ¥150 per Euro. The company estimates an impact of ¥16.0bn from the Trump tariffs, but this is not reflected in the FY3/26 guidance.
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