Fujifilm figures show strong recovery

Fujifilm released its financial figures for its third quarter, showing that the company is recovering from the effects of the pandemic, mostly down to sales from its healthcare division, which is perhaps not surprising in the midst of a global health-related crisis. 

The earnings report explains that the Healthcare and Material Solutions segment has been split into two divisions, leaving Healthcare as a separate division in its own right. Meanwhile, Production Services has been split out from the Document Solutions office business and merged with Graphics Systems (commercial and industrial printing) to become the Graphic Communications business, which is now part of the new Materials segment, apparently to “accelerate synergy creation within the Fujifilm Group and provide further values to the printing industry on a global basis”. 

For most of the headline numbers Fujifilm only breaks its results down into its four main segments: Healthcare, Materials, Document Solutions (mostly office printing) and Imaging (mostly photography). For most people reading this site, the Materials division is the one to watch as this includes Graphics Communication (inks, printheads, printers), as well as the electronic materials business, display materials (mostly components for electronic display screens), industrial products, fine chemicals and recording media. For the third quarter, the Materials segment saw revenue of ¥158.5 billion.

In first nine months, the Materials segment as a whole took in consolidated revenue of ¥464.9 billion, which is up 11.4 percent year on year, and its consolidated operating income came to ¥57.9 billion, which is up 25.9 percent year on year. This is mainly down to the growth in the electronic materials side driven by demand for semi-conductors, which saw revenue up 20.8 percent year on year, to ¥107 billion.

Graphic Communications saw a 9.3 percent rise in the first nine months with revenue of ¥211.1 billion, making it the biggest segment in the Materials division. For just the third quarter, Graphic Communication earned revenue of ¥72.6 billion, 2.6 percent up on the previous year.

Fujifilm attributes this mainly to rising sales of printing plates mirroring a recovery in demand from the Covid-19 pandemic, mainly in Japan and the US. The company also notes that sales of industrial inkjet printheads were steady, reflecting growing demand in the construction material printing markets in Europe and China. Ink sales, mainly of dye inks for household and office markets also rose.

Interestingly, this section of the earnings report concludes: “We will accelerate business growth further by building a global manufacturing structure that satisfies the needs of the inkjet market.” This both suggests to me that Fujifilm sees further growth in inkjet and that the senior management isn’t satisfied with the company’s current performance in this area.

Fujifilm as a whole recorded revenues of ¥1,860.9 billion, up 18.3 percent on the previous year, and with operating income of ¥186.5 billion. This is a distinct improvement on the previous year, and more than Fujifilm had predicted, driven largely by increased sales in healthcare, including the medical systems business, the bio CDMO business, and the life sciences business.

Fujifilm has revised its forecast for the full year, which will end on 31 March 2022, mainly because the company expects revenues to fall in the Business Innovation (office printing) sector and to rise in the Imaging (mostly photographic) sector. Thus Fujifilm is still predicting revenues of ¥2,510 billion but has revised the operating income up from ¥220 billion to ¥225 billion and income before taxes up from ¥240 billion to ¥245 billion. You can find more information on the company from fujifilm.com.


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