“Although the performance of some of our business was significantly affected under the COVID-19 pandemic, we have minimized the negative impacts," the company said.
Fujifilm’s first quarter revenue of ¥456 billion ($A5.9 billion) was down 14.8% from the same period last fiscal year. While operating income fell by 45.1% to ¥20.3 billion ($A266m), consolidated net income was up 87.6% to ¥27.5 billion ($A360m) due to factors including making Fuji Xerox a wholly owned subsidiary.
"In revenue for the first quarter ended 30 June 2020, Fujifilm Group recorded ¥456.27 billion in consolidated revenue (down 14.8% from the same period of the previous fiscal year), "reflecting such factors as sales decrease in the photo imaging business and document business, while sales increased in such businesses as the bio CDMO business and electronic materials business," the company said.
"Operating income amounted to ¥20.4 billion (down 45.1% from the same period of the previous fiscal year). Consolidated income before income taxes amounted to ¥42.2 billion (up 59.9% from the same period of the previous fiscal year) and consolidated net income attributable to FUJIFILM Holdings totalled ¥27.5 billion (up 87.6% from the same period of the previous fiscal year) due to gains on equity securities and others.
“Net Income Attributable to FUJIFILM Holdings increased due to an improvement of net income attributable to the noncontrolling interests resulting from factors such as making Fuji Xerox a wholly owned subsidiary
“In the inkjet business, revenue decreased as the demand of ink for the wide format printer market in China and Europe sharply decreased, although the sales of industrial inkjet printheads are in a recovery trend as our customers resumed operations in China. We will continue to develop and supply innovative products for the industrial inkjet printer market, whose areas of application are expanding, thereby contributing to the advancement of various industries.
“In the graphic systems business, revenue decreased due to a declined demand for printing plates under the impact of the COVID-19 pandemic. We are promoting the sales of environmentally responsive products including process-less CTP plates. In the digital printing field, we continue to aim for business growth by developing and providing innovative products such as the Jet Press750S, a commercial inkjet digital press, to the commercial and package printing market, where digitalization is taking rapidly.
“Although the performance of some of our business was significantly affected under the COVID-19 pandemic, we have minimized the negative impacts by hedging risks through a diversified business portfolio, the strengthening of business structure of each business and a drastic cost reduction we have conducted so far.
“We plan on the assumption that COVID-19 will continue to impact on our performance mainly in business such as Imaging Solutions, Document Solutions, medical systems and graphic systems business during the second quarter and onwards, however, it will bottom out in the first quarter and gradually recover toward the fourth quarter as the economy resumes."
Read Fujifilm's full Earnings Presentation here.
In November 2019, Xerox announced it would sell its 25% stake in Fuji Xerox - its joint venture with Fujifilm - to Fujifilm for $2.3 billion, and Fujifilm agreed to drop its $1 billion lawsuit against Xerox over their failed merger.
