Konica Minolta (4902) Q3 2025 earnings summary

Executive summary

• Revenue for the nine months ended December 31, 2024, rose 3.5% year-over-year to ¥831.8B, with business contribution profit up 59% to ¥28.8B, driven by stabilized office unit profitability and production print growth.

• Operating loss was ¥18.4B, mainly due to impairment losses in sensing and optical components and restructuring costs.

• Loss attributable to owners was ¥13.4B, impacted by high finance costs, tax expense deterioration, and one-time impairment losses.

• Precision Medicine Business was classified as discontinued after the sale of Invicro and Ambry Genetics, with gain on transfer recorded in Q3.

• Major global structural reforms and business selection/concentration initiatives were implemented, including regional and business domain reductions.

Financial highlights

• Revenue for FY24 9M was ¥831.8B, up 3% year-over-year; Q3 revenue was ¥274.0B, flat year-over-year.

• Gross profit improved to ¥364.3B (up 5% year-over-year), with a gross margin of 43.8%.

• Business contribution profit rose 59% year-over-year to ¥28.8B; operating profit was -¥18.5B due to ¥29.1B in impairment losses and ¥17.6B in restructuring expenses.

• Free cash flow for 9M was ¥6.7B, down 50% year-over-year.

• Basic loss per share was -27.09 yen, down from -8.39 yen year-over-year.

Outlook and guidance

• FY2024 full-year guidance remains unchanged: revenue ¥1,134.0B, business contribution profit ¥42.0B, operating profit -¥14.0B, and profit attributable to owners ¥5.0B.

• Dividends forecast at ¥0 per share for FY24.

• Exchange rate assumptions updated to 150 yen/USD and 155 yen/EUR.

• Forecasts unchanged from previous guidance, with risks from economic conditions and currency fluctuations noted.

• Ongoing review of guidance based on progress in business selection and concentration.