Toshiba Tec sees profit surge amid strategic shift
November 8, 2024
Increased business transfer income drives Toshiba Tec’s net profit growth in first half.
Toshiba Tec Corporation recorded a marked increase in profit for the first half of FY2024, with net earnings leaping to ¥26.6 billion ($176 million/ €163 million), compared to ¥2.2 billion a year earlier, boosted by income from strategic business transfers. This growth is largely attributed to transfers to newly established companies, Etria and Riso Kagaku Corporation, which added an extraordinary ¥7 billion in income, improving the capital adequacy ratio in line with Toshiba Tec’s longer-term resilience goals.
The Tokyo-based electronics company reported consolidated net sales of ¥289.2 billion ($1.92 billion/ €1.78 billion), up by 9.7% from the previous year. The Workplace Solutions business group, which includes Toshiba Tec’s office equipment and printer segment, emerged as a major contributor, achieving ¥126.5 billion ($840 million/ €780 million) in sales, reflecting a solid 8.7% rise year-on-year.
In the broader transformation of its workplace business, Toshiba Tec continues to explore digital solutions with new offerings. Gyainamics Inc., a newly formed subsidiary established on 1 October has been tasked with harnessing AI and POS data to address cross-industry challenges in retail. This new entity is expected to drive Toshiba Tec’s digital ambitions in retail solutions, enhancing analytics capabilities across its operational footprint.
Looking forward, Toshiba Tec has maintained its forecast for FY2024, anticipating net sales of ¥565 billion ($3.75 billion / €3.47 billion) and operating profits of ¥18 billion, underscoring confidence in the company’s ongoing digital and market expansion efforts. This guidance is supported by steady growth in Workplace Solutions, set to benefit further from Toshiba Tec’s collaboration with ECI e-Automate to deliver enhanced software services under the Elevate Sky brand.
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