FUJIFILM revenue up in results for March 31, 2024

In the fiscal year ended March 31, 2024, revenue increased by 3.6% year-over-year to JPY2,960.9 billion, mainly due to strong sales in the Medical Systems and Imaging businesses and the impact of exchange rates. Thanks to revenue growth and the impact of exchange rates, operating income amounted to JPY276.7 billion, an increase of 1.3% year-over-year. Net income attributable to FUJIFILM Holdings increased by 11.0% year-over-year to JPY243.5 billion due to higher operating income and valuation gains on marketable and investment securities.

"We are proud to have achieved remarkable milestones in the last fiscal year, with our highest-ever sales, operating income, and net income. Our positive results demonstrate our growing earning power," says Teiichi Goto, president and chief executive officer, representative director, FUJIFILM Holdings Corporation. "In line with our new medium-term management plan VISION2030, we will strengthen Fujifilm Group's corporate value by prioritising profitability and capital efficiency in our management approach. Also, as expressed in our Group Purpose, "Giving our world more smiles," we aim to be a company that brings smiles to the faces of our various stakeholders by reinvesting the value we generate back into society."

As stated in the new medium-term management plan "VISION2030", announced on April 17, 2024, the company target is to achieve record-high sales of JPY3,100 billion and a record-high operating income of JPY300 billion for the fiscal year ending March 31, 2025. It also plans to invest JPY757 billion in growth, mainly in Bio-CDMO and Semiconductor Materials, which is higher than the previous fiscal year ended March 31, 2024.

Highlights by business segments

Healthcare:

Revenue increased 5.0% year-over-year to JPY975.1 billion due to higher revenue in the Medical Systems and Bio-CDMO businesses. In comparison, operating income decreased 5.2% year-over-year to JPY97.4 billion, mainly attributed to the absence of the previous year's one-time gains recorded in Pharmaceuticals business and an increase in one-time expenses, including inventory write-downs in the Bio-CDMO and LS Solutions businesses.

In the Medical Systems business, revenue was driven higher by steady sales of endoscopes, CT, MRI, and other products. Endoscope sales increased primarily in Japan, the U.S., Europe, and China, while CT and MRI sales were driven by higher sales in Central and South America, the Middle East and India.

In the Bio-CDMO business, revenue increased due to the solid performance in contract manufacturing of antibody drugs, mainly at the Denmark site, where productivity also improved. Meanwhile, slow orders for gene therapy and other drugs, reflecting the difficult fundraising climate for biotech venture customers, led to inventory write-downs in the first and third quarter on components and consumables nearing the end of their shelf life.

In the LS Solutions business, revenue was driven lower in Pharmaceuticals by the absence of one-time revenue from the previous year's transfer of the radiopharmaceutical business, while revenue rose in Life Sciences due to license fee income from BlueRock Therapeutics for its program to treat eye diseases using iPS cell technology, in addition to a recovery in sales of culture media for the production of antibody drugs.

Materials:

Revenue increased 1.2% year-over-year to JPY690.0 billion and operating income decreased 34.5% year-over-year to JPY42.9 billion, mainly hit by higher one-time expenses related to M&A.

In the Electronic Materials business, despite stagnant semiconductor market conditions, revenue increased 10.6% year-over-year due to contributions from the semiconductor process chemicals business acquired from Entegris, Inc, in October 2023.

In the Display Materials business, revenue increased as panel makers' operations recovered from the previous year when production adjustments were made throughout the supply chain.

In the Graphic Communication business, revenue decreased mainly due to lower demand for printed materials in the printing plates fields, especially in Europe and the U.S. In the Inkjet business, revenue fell as sales of inkjet printheads for the ceramic market were driven lower due to sluggish demand in China's real estate markets.

Business Innovation:

Overall revenue decreased by 1.4% year-over-year to JPY826.1 billion, but operating income increased by 1.8% year-over-year to JPY70.8 billion, due to the effect of worldwide sales price revisions and other favorable factors.

In the Office Solutions business, revenue decreased as the expansion of new OEMs, worldwide price revisions and other factors were not enough to offset lower exports of devices and consumables to Europe and the U.S. In April of this year, full-scale sales of the Apeos series of digital multifunction devices/printers began in the European region through leading distributors.

In the Business Solutions business, revenue rose mainly due to the effects of the initial consolidation of FUJIFILM MicroChannel and sales digital transformation (DX) solutions. 

Imaging:

Strong sales of instant photo systems and digital cameras boosted revenue by 14.5% year-over-year to JPY469.7 billion and operating income by 39.9% year-over-year to JPY101.9 billion.

In the Consumer Imaging business, steady sales of the INSTAX instant photo systems drove revenue higher. INSTAX's sales target of JPY150 billion for FY2025 was achieved one year ahead of schedule.

In the Professional Imaging business, revenue rose due to strong sales of X-S20 launched in June 2023 and GFX100 II launched in September 2023, in addition to brisk sales of X-H2, X-H2S and X-T5 released in the previous fiscal year. In February 2024, the X100VI high-end compact digital camera was launched, featuring a back-illuminated 40.2 MP sensor and the latest processor.