Mimaki sales up by 23% in Q3 results

Mimaki has released its Q3 Financial Results, posting an increase of 23% in global sales.

Consolidated Financial Highlights below from the company’s briefing materials:

Net Sales

• Sales increased by 3,466 million yen compared to the same period of FY2021 (+23%, including +1,683 million yen due to the impact of exchange rates), exceeding the previous forecast.

• The overall impact of the ongoing shortage of semiconductors from the first half of the fiscal year has persisted while the longer transportation lead times are gradually being resolved.

• Despite the impact of the sales decline resulting from the Russia-Ukraine crisis and China’s COVID-19 policy, firm demand for the Company’s printer units and ink contributed to significant sales growth in all markets: the SG market with an extensive product lineup, the IP market with strong sales of new products, and the TA market with notable recovery demand following COVID-19, especially in emerging countries.

• The yen’s depreciation on foreign exchange had a positive effect, with a considerable increase in sales.

Operating Profit

• Profit increased by 647 million yen compared to the same period of FY2021 (+109%, including +644 million yen due to the impact of exchange rates), exceeding the previous forecast.

• Reviewed selling prices to cope with the continuing impact of higher procurement costs of parts and materials and energy costs.

• Compared with the high cost-of-sales ratio in the same period of the previous fiscal year due to a significant cost increase, the cost-of-sales ratio improved due to a gradual decrease in transportation costs as logistics disruptions were resolved and better model mixing. SG&A expenses increased due to strong business and sales activities.

• The yen’s depreciation on foreign exchange had a positive effect, with a significant increase in sales.

Balance Sheets as of Q3

Cash Conversion Cycle, a key indicator, decreased in comparison to the end of the previous fiscal year as a result of sales expansion, accelerated collection of accounts receivable, inventory reduction activities.

Sales by Market Segment

SG market : Mainly the mid-range models, the entry-level 100 model series, and cutting plotters such as the CG-AR series were strong, new flagship models were also firm, and ink sales remained strong.

IP market : The updates to the lineup of the UJF series of mainstay compact flatbed printers caused main units sales to continue to increase notably, while sales of large flatbed printers performed well, and ink sales were also strong.

TA market : Sales of main units grew substantially, centring on the entry-level model TS100 in Latin America and Asia, while sales of the mainstay mid-range models were strong, and ink sales also grew significantly.

FA business : Sales in relation to PCB inspection equipment, semiconductor production equipment and metal processing remained firm, while sales of FA equipment and PCB mounting equipment decreased.

Sales by Area

Asia and Oceania: While sales in China declined significantly due to the impact of the Zero-COVID policy and the confusion after its lifting, sales increased in most major countries, such as Australia, the Philippines, Thailand, and India. Overall, in addition to strong SG, TA sales expanded significantly, and ink sales were also strong.

Japan: Amid continued economic recovery, sales in the SG, IP, and TA markets increased significantly, and ink sales were also strong.

North America: While the speed of inflation gradually slowed down, IP sales remained strong for both compact and large flatbed printers, SG sales were also strong mainly for mainstay products, sales of ink and spare parts were also strong, and the effect of the yen’s depreciation on foreign exchange contributed positively.

Europe: Although the negative impact of the Russia-Ukraine crisis still remains, sales increased in most major countries, such as Germany, Italy, the U.K., and Portugal. Overall, sales of SG and IP increased significantly, TA sales remained firm, ink demand was also solid, and the effect of the yen’s depreciation on foreign exchange contributed positively.