The first half of the year showed an increase in sales but a decrease in profits for the company’s core printing business.
Canon’s financial results for the first half of 2023 (January–June) showed a 6.1% increase in sales to 1.99 trillion yen compared to the same period the previous year. Operating profit rose by 1.2% to 176.7 billion yen, achieving both increased revenue and profit.
As for Canon’s main printing business, sales stood at 1.13 trillion yen, a 5.1% increase from the previous year, but operating profit dropped by 8.0% to 109.9 billion yen. This decrease in profit is due to reduced sales of laser printers in the first half of the year and a reactionary decline following significant growth in consumable sales for laser printers in the second quarter of the previous year.
Canon offers a wide range of printing equipment from office MFPs to both laser and inkjet printers. By deploying common software across these devices, Canon supports diverse work styles such as remote work and decentralized offices, which has driven sales growth.
Canon categorizes its printing business into three segments: office, prosumer, and production. Let’s examine each segment’s business sales for the second quarter.
Office: Shipment of office MFPs increased by 17% in the second quarter compared to the previous year. Sales for office MFPs in the second quarter were 156.5 billion yen, a 14.0% increase from the previous year. The total sales for the office segment, including other office-related sales, were 245.2 billion yen, up 14.2%. The projected sales for the entire year of 2023 for this segment is 984.3 billion yen, a 10.7% increase from the previous year.
Prosumer: Laser printer shipments continued to adjust due to poor market conditions from the latter half of 2022 through the second quarter of 2023. Sales for the prosumer segment in the second quarter were 232.9 billion yen, a 13.0% decrease from the previous year. This includes 149.7 billion yen from laser printers (down 15.0%) and 83.2 billion yen from inkjet printers (down 9.1%).
However, with the expected market recovery in the second half of the year and the launch of two new color laser printer series in April, annual sales for the prosumer segment in 2023 are projected to be roughly equivalent to the previous year at 1.30 trillion yen, a slight 0.8% increase. With the increased sales of the new series, there are also expectations for a rise in consumables sales in the following year. In manufacturing, the company is promoting cost reduction from the development stage, such as standardization of parts and modularization of design, and also aiming to improve the profitability of the business.
Production: Despite some companies being cautious about investment due to ongoing inflation, many printing companies continue to purchase printing machines as planned and volume for production printers is moving steadily. Canon saw increased sales mainly from large binding machines and new products for in-house printing during the second quarter. They have been experiencing continuous growth in service revenue for the past nine quarters. Canon plans to aggressively market the large-format printer Colorado M launched in the second quarter, expanding the number of dealers who carry the product to achieve further growth.
Canon Sales Growth by Hardware/Software for the Second Quarter of the Printing Business
Canon announced sales growth rates by product type in local currency for the second quarter. The sales growth rate for office MFPs in the second quarter was 15% for hardware and 3% for non-hardware. For the entire year of 2023, the company expects 10% growth for hardware and 4% for non-hardware. Laser printers saw a decline of 10% for hardware and 20% for non-hardware. For 2023, Canon projects a 4% increase in hardware and a 2% decrease in non-hardware.
Inkjet printers dropped by 23% for hardware and 5% for non-hardware in the second quarter. For 2023, the company forecasts a 1% decrease for hardware and non-hardware. The production segment experienced growth of 3% for hardware and 4% for non-hardware. Canon predicts an 11% increase for hardware and a 2% decrease for non-hardware in 2023.
Canon Regional Sales of Printing for the First Half of 2023
Canon’s regional sales for printing in the first half of 2023 were highest in the Americas at 364.1 billion yen (a slight increase of 0.1% from the previous year). Europe followed at 336.4 billion yen (up 9.7%), Japan at 241.8 billion yen (up 4.4%), and Asia and Oceania at 187.8 billion yen (up 8.7%). The minimal growth in the Americas is attributed to a significant decline of 8.4% in the second quarter compared to the previous year, likely due to adjustments in the shipment of laser printers.
