August 8, 2023
The company has released its latest financial results, reporting an increase in sales year-on-year (YoY) of 16.4%.
Sales for the first quarter increased by 16.4% as compared to the previous corresponding period, to ¥534.6 billion ($3.74 billion/ €3.4 billion). Ricoh said that sales mainly increased in the office service business due to the relaxation of restrictions on supplying our products and merchandise experienced the first quarter of the previous fiscal year, the acquisitions in Europe and the Americas, and other factors. In addition, sales increased due to the consolidation of PFU Limited (PFU), which became a consolidated subsidiary in September 2022, and yen depreciation.
Gross profit increased by 13.2% year-on-year, to ¥190.1 billion ($1.33 billion/ €1.2 billion). Ricoh said that profit increased due to yen depreciation as well as the expansion of the office services business and increased sales of edge devices in the office printing business due to the relaxation of supply shortages.
Digital Services sales were ¥427.3 billion ($2.99 billion/ €2.72 billion) and increased by 15.9% as compared to the previous corresponding period. In the office services business, sales of the Scrum series in Japan continued to grow due to the expansion of back-office DX sales and progress was made in acquiring projects in the manufacturing and other industries through Scrum Asset, which offers proposals by industry mainly to mid-sized companies. In addition, the number of subscribers to RICOH kintone plus, a cloud-based business improvement platform developed jointly with Cybozu, Inc., also grew steadily.
In the Americas, sales increased due to growth in the area of communication services through the acquisition of Cenero, as well as strong sales of document solutions accompanying the rebound in office printing.
In Europe, sales continued to increase due to sales of packages and synergies with acquired companies. In June, we completed the acquisition of PFH Technology Group (PFH), the leading provider of IT infrastructure, cloud and managed workplace services in Ireland, and are working to strengthen our IT services. In the office printing business, sales of edge devices increased year-on-year due to the progress in the delivery of bulk sales, including A3 MFPs, mainly due to the resolution of the supply shortage of A4 MFPs.
As a result of increased office services sales and continued implementation of pricing controls, including cost pass-through and value-added sales, in addition to recovering office printing, Digital Services operating profit was ¥8.9 billion ($62 million/ €57 million) and increased by ¥6.0 billion ($42 million/ €38 million) year-on-year.
Digital Products Digital Products sales were ¥21.3 billion ($149 million/ €136 million) and increased by 198.3% (Sales including intersegment sales were ¥116.7 billion ($815 million/ €743 million) and increased by 13.4%) as compared to the previous corresponding period. Revenue increased due to the recovery in production of A4 MFPs and the acquisition of PFU.
Ricoh added that despite increased sales and efforts to improve profits by continuing structural reforms in production and development, Digital Products operating profit was ¥0.9 billion ($6.3 million/ €5.7 million) and decreased by ¥11.0 billion ($76.9 million/ €70 million) year-on-year, mainly due to a decline in sales caused by production adjustments for relatively high-value-added A3 MFPs.
Ricoh did not revise the previous full year forecasts.
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