The OEM has published its latest financial results for the nine months ending 31 December 2018.
In terms of domestic sales, Ricoh reported an increase of 1.5 percent from the same period in 2017, having achieved ¥587.7 billion ($5.3 billion/€4.7 billion), though its overseas sales were down by 3.8 percent, from ¥936.9 billion ($8.5 billion/€7.5 billion) in 2017 to ¥901.7 billion ($8.2 billion/€7.2 billion) in 2018.
Total sales were down 1.8 percent, from 2017’s ¥1.5 trillion ($13.6 billion/€12 billion) to 2018’s ¥1.4 trillion ($12.7 billion/€11.2 billion). However operating profit saw a significant increase, from ¥48 billion ($437 million/€385.1 million) in 2017 to ¥79.1 billion ($720.2 million/€634.6 million) in 2018.
In its third quarter (the three months ending 31 December 2018), Ricoh recorded decreases in domestic and overseas sales compared to Q3 2017, achieving ¥192.6 billion ($1.7 billion/€1.5 billion) and ¥308.5 billion ($2.8 billion/€2.4 billion) respectively this financial year. However, it’s operating profit rose this Q3, from ¥26 billion ($236.7 million/€208.5 million) in 2017 to ¥27.1 billion ($246.7 million/€217.4 million) in 2018, a hike of 4.4 percent.
Looking ahead to the end of this financial year, which falls on 31 March 2019, Ricoh predicts total sales of ¥2 trillion ($18.2 billion/€16 billion) and operating profit of ¥85 billion ($773.9 million/€681.9 million).
The company explained, “The fiscal year ending March 31, 2019 is the second year of 19th Mid-Term Management Plan in which we make significant progress in our “RICOH Ignite” growth strategy. We will improve the earning power of our Office Printing segment and expand growth areas which can serve as the pillars of new business. In addition, all employees will work as one to further implement thorough work process reforms and business selection, continuing to carry out and enhance our measures for building a solid company’s essential character. During the third quarter, sales in the Office Service segment placed as growth areas continued to increase gradually. On the other hand, sales in the Office Printing segment decreased due to refining of business meetings based on the profit-oriented marketing strategy and inventory adjustment before launching new products. In addition, sales also decreased in accordance with the change of past consolidated subsidiaries related to semiconductor and logistic to equity affiliates and exclusion of Ricoh India Limited from the scope of consolidation.”
Ricoh added, “Sales in the Office Printing segment decreased by 4.7 percent, as compared to the previous corresponding period, to ¥809.2 billion ($7.3 billion/€6.4 billion). Sales in the overseas market decreased mainly in hardware and related supplies due to refining of business meetings based on the profit-oriented marketing strategy in accordance with 19th Mid-Term Management Plan. Gross profit decreased accordingly. Selling, general and administrative expenses decreased significantly due to the effect of structural reforms. As a result, operating profit in the Office Printing segment increased by 1.9 percent, as compared to the previous corresponding period, to ¥90.2 billion ($821.2 million/€723.6 million).”
