Profit soars 225.6%! Konica Minolta announces first-half results
Recently, Konica Minolta released its consolidated financial report for the first half of fiscal year 2027. The report shows that revenue from the professional printing business was 121.6 billion yen, down slightly by 1.7% year-on-year; business contribution profit was 9.3 billion yen, up sharply by 91.9% year-on-year; and operating profit was 9 billion yen, soaring 225.6% year-on-year, making it the biggest profit highlight for the group in this half-year.
Professional Printing Business
Revenue in the production printing segment reached 98.7 billion yen, with reported revenue down 4.9% year-on-year. The main reason for this decline was that the previous year the group implemented a business selection and concentration strategy, including equity transfers, which raised the revenue base for the same period last year. Excluding this one-time factor, revenue actually grew, benefiting from favorable foreign exchange effects due to the depreciation of the yen.
Looking at the business structure, hardware and non-hardware segments showed clear divergent trends: hardware business performance fell short of expectations. The financial report shows that under the global environment of reduced capital expenditure and low investment appetite, full-color printer shipments decreased 9% year-on-year in the first half and 8% in the second quarter. Sales of mid-to-high capacity production printers were under pressure, with hardware revenue down in Europe, the U.S., and China.
The non-hardware segment, driven by the growing installed base of mid-capacity production printing equipment, saw supporting revenue from consumables and maintenance rise in parallel. Regional performance diverged: non-hardware revenue declined in Europe and China, while the U.S. and India saw significant growth, becoming important sources of growth in the production printing non-hardware business.
The industrial printing segment, however, experienced counter-trend growth. Revenue for this reporting period reached 23 billion yen, up from 20.2 billion yen in the same period last year, a 13.9% increase. Both hardware and consumables sales rose in tandem, supported by continued demand in two downstream application markets: labels and decoration. Sales of label and decorative printing equipment increased significantly, becoming a key driver of overall professional printing revenue.
According to Europe market data from Infosource, Konica Minolta holds leading positions in several strategically important professional printing segments in Europe. Despite a challenging and competitive market environment, the company achieved a 39% market share in digital label printing in Europe in Q1 2026, almost double that of the closest competitor, and its share in the mid-to-high capacity production printing market rose to 53.5%, showcasing strong product competitiveness in specialized printing segments.
Medium- to Long-term Plans
Based on first-half performance, the realization of U.S. tariff refunds, and the positive trend in professional printing, Konica Minolta has raised its full-year consolidated performance forecast for FY2027. The full-year revenue forecast for professional printing was increased from 258 billion yen to 264 billion yen, up 6 billion yen; business contribution profit was raised from 15.5 billion yen to 19 billion yen; and operating profit was revised from 15 billion yen to 18.5 billion yen, reflecting the company's optimistic view of the printing segment's future. In the group's overall business strategy, professional printing is identified as a core profit growth driver.
According to Konica Minolta's "2026-2028 Group Plan," the next three years are explicitly positioned as a critical period to establish a foundation for long-term growth. FY2027, as the first year of this mid-term plan, sets three core management directions: drive profit growth through professional printing, continuously strengthen overall financial structure, and promote commercial implementation of various emerging growth businesses.
Meanwhile, the report also mentions that Konica Minolta will continue to bring AI technologies into practical printing services, using AI to predict printer malfunctions, automatically adjust print quality, and thus improve machine utilization and optimize overall service efficiency.