Mimaki reports increased sales and profits in H1 results

Mimaki has released its Half Year results for the period April 1 2024 to 30 September 2024. 
The global economy showed a moderate recovery in this period despite high core inflation and regional variations. Japan’s economy continued to recover, though personal consumption remained low due to high prices, while corporate capital investments remained strong. In response, the Group implemented the strategic initiatives outlined in the “Mimaki V10” medium- to long-term growth plan, launching new products across key markets to strengthen profitability and capture evolving market demands.

Key product introductions included the CJV200 series in the Sign Graphics (SG) market, the JFX200-1213 EX in Industrial Products (IP), and new Direct to Film (DTF) models and a super-wide hybrid printer in the Textile Apparel (TA) market. The Group also expanded sales operations domestically by relocating the Nagoya Sales Office to accommodate a larger product line-up.

For the period, net sales rose 15.5% year-on-year, driven by a favourable exchange rate. Key regions, including North America, Latin America, Japan, Asia, and Oceania, saw substantial sales increases. Operating profit grew by 101.5%, benefiting from improved cost structures and efficient spending, despite higher personnel and R&D expenses. The Group surpassed its interim “Mimaki V10” target with an operating profit margin exceeding 10%.

Financial Highlights:
- Net Sales: 40,942 million yen (up 15.5% year-on-year)
- Operating Profit: 4,698 million yen (up 101.5% year-on-year)
- Ordinary Profit: 4,321 million yen (up 114.5% year-on-year)
- Net Income: 3,250 million yen (up 130.1% year-on-year)

Regional and Segment Performance:
- Japan, Asia, and Oceania: Net sales rose by 14.8% with strong performance across all markets, particularly in Japan’s IP market due to small and large flatbed models.
- North America and Latin America: Sales grew by 20.9%, led by the TA market and SG and IP markets, aided by positive exchange rates, although TA sales were impacted by adjustments in DTF shipments for a specific sales channel.
- Europe, Middle East, and Africa: Sales increased 11.0%, primarily due to growth in the SG market driven by UV ink models, along with strong TA market performance.

Market Segments:
- SG Market: Sales rose by 14.2%, driven by flagship and entry-level UV ink models, with ink sales performing well.
- IP Market: Net sales increased by 11.8% due to strong sales of both small and large flatbed models, with ink sales also robust.
- TA Market: Sales jumped 30.1%, with increased DTF model sales and significant growth in ink sales.

Operational Metrics:
- Cost Structure: Significant improvement in the cost of sales ratio, with completed sales of high-cost materials products mitigating the impact of increased ocean freight costs.
- Cash Conversion Cycle: Improved due to optimised inventory levels.

Dividend Policy:
- An interim dividend was raised to 17.5 yen per share, up from the previous forecast of 15.0 yen, reflecting strong semi-annual performance.

The company maintained a positive outlook, supported by record-setting semi-annual profit and strong product demand across regions.