By Andy Slawetsky – Kyocera Corporation (TOKYO:6971) recently published its consolidated financial results for Q1 of Fiscal Year 2024 (FY24-Q1), exhibiting a slight dip in key indicators compared to the same quarter of the previous fiscal year.
According to the report, Kyocera’s consolidated sales revenue for Q1 dropped by 2.5% YoY from JPY 491,954 million to JPY 479,420 million. Similarly, the operating profit for the quarter was down by 38.0% from JPY 41,428 million in FY23-Q1 to JPY 25,677 million in FY24-Q1. Profit before income taxes also declined by 26.5%, and the profit attributable to owners of the parent company decreased by 25.2% YoY.
- Consolidated Sales Revenue Down 2.5%
- Operating Profit Down 38%
- Profit Before Income Taxes Down 26.5%
The company attributes this quarter’s downturn to several external influences including continued geopolitical uncertainty, unstable foreign exchange markets, and inflation in prices and wages. A decrease in demand for key components, despite a favorable impact from a depreciating yen, also contributed to lower sales.
Interestingly, even in the face of a less-than-ideal quarter, Kyocera remains optimistic for the remainder of Fiscal Year 2024. The company is maintaining its financial forecasts announced in May 2023, predicting a recovery in the semiconductor-related markets, as well as information and communications markets, from the second half onward.
Specifically, Kyocera anticipates a 3.7% rise in sales revenue and a 14.4% increase in operating profit by the end of FY2024. Profit before income taxes is projected to rise by 13.5%, and the profit attributable to owners of the parent company is expected to grow by 13.3%.
While Kyocera faced some headwinds in FY24-Q1, it seems undeterred, pointing to an expected upswing in sales and profitability from October 2023 onwards. The company aims to achieve these forecasts by booking new orders, expanding sales, and seizing new profitability improvement opportunities.
A single quarter’s performance is just a snapshot and doesn’t necessarily predict a company’s long-term trajectory. External factors often play a significant role in shaping quarterly results, and in Kyocera’s case, they appear to have had a significant impact.
We’ll continue to monitor Kyocera’s performance over the coming quarters to see if their forecasted recovery materializes. For the office equipment industry as a whole, the hope is for stabilization of market conditions, with recovery in key market segments expected to drive a more prosperous FY2024.
For complete details, refer to Kyocera’s consolidated financial results here
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