Epson has revealed its first quarter financial results for the fiscal year 2022, recording revenue of ¥297.8 billion (A$3.2 billion), up 5.6 per cent from the same time last year.
However, its profits dipped by 6.6 per cent to ¥22.6 billion (A$0.24 billion), which the company attributed to supply constraints and logistics costs.
“Results were negatively affected by supply constraints, which caused unit sales to decrease, and by skyrocketing materials and logistics costs, but they were positively affected by dynamic product pricing based on supply and demand. Profit for the period was also positively affected by the weakened yen,” the company said.
“The internal plan on which the previous outlook (April 28) was based did not factor in the negative impact of the Shanghai lockdown (interruption of shipments outbound from our Shanghai warehouse), yet revenue was in line with the plan and business profit exceeded it by about ¥5B owing to dynamic pricing and cost control.”
Within its printing solutions business, Epson said with supply constrained due to semiconductor shortages and the Shanghai lockdown, it increased revenue by dynamically adjusting prices based on supply and demand, but profit declined due to soaring material and logistics costs.
This business unit recorded a revenue of ¥197.6 billion (A$2.12 billion), up 2.8 per cent from the prior-year period. But its segment profit was down 21 per cent from the same time last year to ¥21.0 billion (A$0.23 billion).
Specific to commercial and industrial printing, it said its sales in the growth areas of the commercial and industrial IJP finished products business was limited due to supply constraints.
As for the sales of photo ink in existing areas, Epson said it decreased compared to the same period last year, when there was special demand from North American customers.
In addition, it reported decreased revenue in the printhead sales business due to shipment constraints caused by the Shanghai lockdown, and added that small printer revenue was flat YoY due to supply constraints.
“[We expect] sales to grow in the second half, capturing demand as supply constraints ease and as we launch new products,” the company said.
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