EPSON reports increased revenue in Q1

Seiko Epson Corporation reported an increase in revenue and business profit for the first quarter of the fiscal year 2024, ending March 2025, despite challenging economic conditions. The company's revenue reached ¥336.6 billion, up ¥21.7 billion year-on-year, while business profit rose to ¥23.4 billion, up ¥7.9 billion. The positive results were significantly influenced by the depreciation of the yen and robust sales of printheads in the commercial and industrial printing sectors.

However, the company faced a downturn in semiconductor sales due to continued market inventory adjustments. In response, Epson has adjusted its outlook, lowering expectations for microdevices and robots but raising projections for printheads. The full-year revenue outlook has been revised upward to ¥1,370.0 billion, reflecting the weaker yen.

Expenses from winding down a manufacturing site in Singapore were offset by foreign exchange gains, contributing to a profit of ¥19.1 billion. Both revenue and business profit exceeded internal plans, driven by the weaker yen, strong printhead sales, and revised promotion timings in office and home printing sectors.

Printing Solutions Department Performance

The Printing Solutions department improved performance in Q1. The segment's revenue was ¥235.9 billion, up ¥20.8 billion year-on-year, with segment profit at ¥29.6 billion, up ¥7.2 billion. Revenue in the Office & Home Printing segment increased to ¥161.0 billion, primarily driven by the weak yen.

Office & Home Printing Highlights:

- SOHO and home inkjet printer (IJP) unit sales increased despite price competition, with hardware revenue remaining stable on a local currency basis but rising due to the weaker yen.

- IJP ink revenue grew, driven by foreign exchange effects, an increase in the number of machines in the field, and a rise in sales of high-capacity ink bottles and ink for an office-shared printers, outweighing the decline in ink cartridges.

- Office shared printer revenue increased owing to higher hardware unit sales and ink sales, alongside the effects of the weaker yen.

- Business profit for Office & Home Printing rose to ¥13.2 billion, attributed to higher revenue, fixed cost containment, lower transportation costs from revised ocean freight rates, and the weaker yen.

**Commercial & Industrial Printing Highlights:**

- Revenue reached ¥74.8 billion, with a business profit of ¥16.3 billion.

- High interest rates tempered sales of commercial and industrial inkjet printer finished products, yet revenue grew due to increased sales of label and corporate printers and the weak yen.

- Printhead revenue significantly increased, mainly from strong sales to commercial and industrial printer manufacturers in China, which are also exporting.

- Small printer and other revenue remained flat year-on-year due to restrained investment by small and medium-sized operators in Europe and North America's retail and restaurant industries amid sustained high interest rates.

- Business profit in commercial and industrial printing surged due to increased finished product and printhead sales revenue and reduced transportation costs.