Toshiba Tec Reports Strong Sales, Plus Big Net Income Gains Driven by ETRIA Transfer

Toshiba Tec of Japan has reported financial results for its second quarter and the first six months (first half) of its fiscal year, with both ending on September 30, 2024.

Overall, net income soared due to the transfer of the company’s MFP development business to ETRIA Company, its joint venture with Ricoh. However, sales and profit for MFPs were up in their own right, due to strong sales overseas. This continued the positive trend from the first quarter.

First Half

First-half net sales were ¥289.17 billion ($1.89 billion), up 10 percent year-over-year; operating profit was ¥9.47 billion ($62.05 million), up 60 percent year-over-year; and net income was ¥26.60 billion ($174.35 million) versus ¥2.16 billion ($17.04 million) for the first half a year ago.

Toshiba Tec said sales increased due mainly to increased sales of point-of-sale (POS) systems and copier/MFPs, and the impact of foreign exchange rates.

On the profit front, profitability of MFPs increased and the improvement in profit and loss of POS systems for the overseas markets mainly in the Americas, resulting in operating profit that was up 60 percent year-over-year.

Net income was up ¥24.44 billion ($160.19 million) year-over-year primarily due to recording a gain on sale of businesses that involved transferring the company’s businesses related to the development and manufacturing of MFPs and auto ID systems to ETRIA Company, which is the joint venture between Toshiba Tec and Ricoh Company, and all of Toshiba Tec’s inkjet print-head businesses to RISO Technologies Corporation.

Workplace Solutions Business Group

Toshiba Tec’s Workplace Solutions Business develops and markets MFPs for domestic and overseas markets, auto ID systems for overseas markets, inkjet heads for domestic and overseas markets, and related products.

Toshiba Tec noted that there was a “severe business environment in which the declining printing volume due to work style reforms and office DX promotion and intensifying competition with peers continue.”

Sales of MFPs increased as a result of strong sales overseas and the impact of foreign-exchange rates. Sales of inkjet heads decreased due to the fact that all of the businesses were transferred to RISO on July 1, 2024, as mentioned above.

As a result, net sales for the Workplace Solutions Business Group were ¥126.49 billion ($828.90 million), up 9 percent year-over-year, and operating profit was ¥7.96 billion ($52.16 million), up 59 percent year-over-year, due to the increase in net sales, effects of structural reform and structural transformation implemented so far, and the impact of foreign-exchange rates.

Second-Quarter Results

Toshiba Tec’s second-quarter net revenue was ¥148.97 billion ($976.21 million), up 1.0 percent year-over-year; operating profit was ¥5.17 billion ($33.88 million), up 11.03 percent year-over-year; and net income was ¥23.2 billion ($152.06 million), up 90.52 percent year-over-year (the last due mainly to transfer to ETRIA).

Forecast

Toshiba Tec revised its forecast, increasing its forecast for net income. For its fiscal year that will end on March 31 2025, it’s forecasting net revenue of ¥565 billion ($3.70 billion), up 3.1 percent year-over-year;  operating profit of ¥18 billion ($117.98 million), up 13.5 percent year-over-year; and net income of ¥24 billion ($157.26 million) versus a loss of ¥6.7 billion ($43.90 million) for the previous fiscal year.

More Resources

• 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
• February 2024: Ricoh, Toshiba Tec Complete New Venture, Provide New Details