Konica Minolta (4902) Q1 2025 earnings summary

Executive summary

• Revenue increased 7.4% year-over-year to ¥286.2 billion, with all five business segments posting growth, aided by favorable FOREX and strong performance in performance materials, industrial print, DW-DX, and Precision Medicine.

• Business contribution profit improved to ¥1.6 billion from a ¥4.1 billion loss, and operating loss narrowed to ¥0.3 billion, reflecting higher gross profit and deficit reduction in non-focused businesses.

• Net loss attributable to owners improved to ¥3.4 billion from ¥5.6 billion loss year-over-year; basic EPS was -¥6.98.

• Revenue growth was strongest in Asia (ex-China) at 21%, followed by China (17%), North America (8%), and Europe (4%), while Japan declined 1%.

• Segment reclassification implemented to align with the Medium-term Business Plan, focusing on business selection and concentration.

Financial highlights

• Gross profit rose 13% year-over-year to ¥126.4 billion; gross profit ratio improved by about 2 points to 44.2%.

• SG&A expenses increased 8% to ¥124.8 billion, mainly due to FOREX and higher personnel costs.

• Free cash outflow improved to ¥8.2 billion from ¥10.8 billion a year ago, supported by business transfers.

• Equity ratio attributable to owners increased to 39.9% from 38.9% at March 31, 2024.

• Cash and cash equivalents at period-end were ¥111.7 billion, down ¥17.8 billion from March 31, 2024.

Outlook and guidance

• FY2024 earnings forecast remains unchanged: revenue ¥1,160.0 billion, business contribution profit ¥40.0 billion (+54%), operating profit ¥13.0 billion (-50%), and profit attributable to owners at break-even.

• Exchange rate assumptions for the year: ¥140/USD and ¥150/EUR; sensitivity analysis provided for major currencies.

• Focus continues on business selection, concentration, and global structural reforms.