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Toshiba Tec and its Workplace Solutions Business Report Soaring Profit Growth

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On August 7th, Toshiba Tec of Tokyo, Japan, released financial results for its fiscal first quarter, which consisted of the three months that ended on June 30, 2023.

Overall, it was a stellar quarter for Toshiba Tec, especially for its Workplace Solutions Business, fueled by higher sales and higher profitability for higher-value MFPs.

Toshiba Tec’s first-quarter net sales were ¥122.37 billion ($854.60 million), up 12.0 percent year-over-year; operating profit was ¥1.28 billion ($8.94 million), up 532.3 percent year-over-year; and profit was ¥38 million ($265 thousand), versus a loss of ¥2.16 billion ($15.08 million) for the first quarter a year ago. 

Toshiba Tec reported that it benefited from increased sales of point-of-sale (POS) systems for the Japan market, overall increased MFP sales, and the positive effect of yen depreciation. Additionally,  profitability of MFPs improved.

The company has two business groups: Workplace Solutions Business and Retail Solutions Business. The Workplace Solutions Business handles MFPs for domestic and overseas markets, auto ID systems for overseas markets, inkjet print heads for domestic and overseas markets, and related products. The Retail Solutions Business handles POS systems for domestic and overseas markets, auto ID systems for domestic market, and related products.

Workplace Solutions Business

Sales and profit for MFPs were up due to the positive impact of foreign-exchange rates, in addition to increased sales in the Americas and Europe. Sales and profits were also up due Toshiba Tec raising MFP prices and supplying higher-value MFP models. 

Sales of inkjet print heads declined due mainly to decreased sales to overseas customers. As a result, first-quarter net sales for the Workplace Solutions Business were ¥54.47 billion ($380.40 million), up 16 percent year-over-year. Operating profit for Workplace Solutions soared to ¥2.11 billion  ($14.74 million), up ¥1.9 billion year-over-year (or up 93.8 percent year-over-year), due to an increase in sales resulting from recovery from product-supply disruptions, increased selling prices and other factors, as well as due to structural reform.

Retail Solutions Business

The Retail Solutions Business handles POS systems for domestic and overseas markets, auto ID systems for domestic market, and related products.

Net sales for the Retail Solutions Business were ¥69.12 billion ($482.65 million), up 9 percent year-over-year. However, operating profit was a loss of ¥828 million ($5.7 million), versus an operating profit of ¥72 million ($502 thousand) for the first quarter last year. 

Toshiba Tec said the loss was due to a deterioration in profit and loss for POS systems for both Japan and overseas.

Forecast

Toshiba Tec maintained its forecast, except for its forecast for net sales, which it raised. 

The company s forecasting net sales of ¥530 billion ($3.70 billion), up 3.8 percent year-over-year; operating profit of ¥18 billion ($125.69 million), up 11.9 percent year-over-year; and profit of ¥7 billion ($48.87 million) versus a loss for the previous fiscal year.

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