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Epson announces profit and revenue increases

May 7, 2015

The OEM’s 1Q2015 results showed growth across its business.Epson logo

The results included a 7.7 percent year-on-year increase in revenue to ¥1.086 trillion ($9 billion/€8 billion), and a 12.4 percent increase in profit to ¥101.2 billion ($842 million/€745 million), up 12.4 percent year over year. In terms of inkjet printers, demand “remained firm in Europe but contracted in Japan”, due to a “delayed recovery in consumer spending”.

The OEM also saw inkjet demand “decrease slightly” in North America, while wide-format demand “decreased somewhat” in Japan but “moved sideways in Europe and “remained firm” in the US. In terms of dot-matrix machines, demand “is slipping” in the Americas and Europe, and trending “downward” in China. Overall however, printing revenue “increased”, and Epson reported that it “succeeded in sharply expanding inkjet printer revenue despite a decline in ink cartridge” shipments.

The revenue grew thanks to the “reinforced line-up of printers with high-capacity ink tanks”, which saw “strong sales, especially in emerging markets”. With the RIPS (Replaceable Ink Pack System) machines “reinforced […] for a serious entry into the business market”, Epson also launched an MPS business in Japan, and revenue from consumables “rose along with an improved composition of the install base”.

Wide-format printers saw “ongoing firm demand” in large-photo and colour calibration sectors, and increasing revenue in professional photo markets thanks to “compact, high-performance new models”. The textile market’s applications “expanded to encompass” more products, while direct-to-garment machine sales were “expanded” to new territories.

The entire segment – information-related equipment – saw profit increase “due to a combination of revenue growth from major products” and currency exchange effects to ¥133.6 billion ($1.1 billion/€984 million), an increase of eight percent year-over-year. Revenue for the unit meanwhile reached ¥907.2 billion ($7.5 billion/€6.7 billion), an increase of 7.9 percent year-over-year.

Epson attributed the positive results to its “updated mid-range business plan”, a three-year initiative to “manage our businesses so that they create steady profit while avoiding the single-minded pursuit of revenue growth”. It added that “our top priority has been steady profit and cash flow”, and to achieve this it has “been readjusting our product mixes and adopting new business models”, while also “aggressively developing markets in new segments”.

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