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Konica Minolta results affected by global lockdowns

July 30, 2020

The company has announced its consolidated financial results for the three-month period ended 30 June 2020.

Konica Minolta said its revenue was affected by the lockdown in Europe and the US, Office and Professional Print, which account for a little under 70% of its sales in Europe and the US. Revenue for the period was ¥173.2 billion ($1.65 billion/ €1.40 billion), down 28% year-on-year. The company added that with economic activity resuming in China and restrictions being relaxed from May onward in Europe and Japan, June saw increases with respect to April and May.

For the office segment, recorded revenue was ¥94 billion ($894 million/ €761 million), a decrease of 30% year-on-year. Konica Minolta said it saw a decline in hardware sales due to the delay of the installation and reduction of sales activities to acquire new customers caused by suspension or stagnation of customers’ activities in accordance with the lockdown, and saw lower non-hard sales correlated with a decline in print volumes due to cancellations of events and a decline in client companies’ employees coming into the office. Konica Minolta believes that the impact of COVID-19 in its office segment, is around ¥38 billion ($362 million/ €308 million).

Forward looking, Konica Minolta plans to expand sales in the office segment with full line-ups of the new MFP models and enhancing the affinity between MFP and WPH, improve the product mix by resumption of the US economy and have consumables dispatched, which was an upfront cost in the first quarter to make a full-scale contribution in sales.

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