Mixed Bag for Toshiba Tec Financials, with Weakness in Third Quarter

On February 6th, Toshiba Tec of Japan reported financial results for its third quarter and last nine months of its fiscal year, with both ended on December 31, 2024.

In a nutshell, it was a very mixed bag for the company. The bottom line was that both revenue and profit was up for the nine-month period.

However, operating profit was down in the third quarter, and MFP sales appeared to be slowing.

Nine-Month Period

For its nine-month period (last three quarters), Toshiba Tec reported net revenue of ¥425.51 billion ($2.80 billion), up 7.3 percent year-over-year (YoY); operating profit of ¥11.16 billion ($73.54 million), up 74.2 percent YOY; and net income of ¥27.18 billion ($179.11 million), versus a loss for the same period a year earlier.

The company said net revenue was up due to increased sales of point-of-sale (POS) systems and the impact of foreign-exchange rates. 

Workplace Solutions Business

(The Workplace Solutions Business Group handles MFPs for domestic and overseas markets, auto ID systems for overseas markets, inkjet heads for domestic and overseas markets, and related products.)

Workplace solutions’ net sales were ¥180.49 billion ($1.18 billion), down percent 3.89 percent YoY, and operating profit was ¥8.4 billion ($55.35 million), down percent 14.29 percent YoY. The company said profit was down for this business due to rising personnel and R&D costs.

Toshiba Tec noted that it transferred its development and manufacturing of MFPs and auto ID systems to ETRIA Company on July 1, 2024. It also transferred its inkjet-print head business to RISO Technologies Corporation  on July 1, 2024. Its sales division for MFPs and auto ID systems are not included in the transfer to ETRIA.

Third Quarter

Third quarter net sales were ¥136.3 billion ($898.19 million) down 2.21 percent YoY, and operating profit was ¥2.3 billion ($15.15 million), down 36.11 percent YoY. 

Forecast

Toshiba Tec increased its forecast for net revenue for its fiscal year that will end on March 31, 2026. The company is forecasting net revenue of ¥572.00 billion ($3.76 billion), up 4.2 percent YoY; operating profit of ¥18.00 billion ($118.62 million), up 11.94 percent YoY; and profit of ¥24.00 billion ($158.15 million) vs.a loss of versus the previous year.

More Resources

• November 2024: Toshiba Tec Reports Strong Sales, Plus Big Net Income Gains Driven by ETRIA Transfer
• August 2024: Profits Soar for Toshiba Tec’s First Quarter on Strong Revenue Growth
• July 2024: Ricoh-Toshiba Tec Joint Venture ETRIA Now Established
• May 2024: Mixed Results for Toshiba Tec, But Office MFPs See Strong Growth