Ricoh Company (7752) Q2 2025 earnings summary

Executive summary

• Revenue increased 8.1% year-over-year to ¥1,202.6 billion for H1 FY2024, driven by office services growth, Toshiba Tec integration, and yen depreciation, but operating profit fell 65.2% to ¥6.8 billion due to higher expenses and one-time restructuring costs.

• Net profit attributable to owners dropped 40.6% to ¥9.2 billion, with comprehensive income turning negative at ¥23.9 billion loss, mainly from FX translation.

• Ricoh Digital Services saw higher recurring revenues but lower earnings, while Digital Products and Graphic Communications segments posted improved earnings.

• Corporate Value Improvement Project and Second Career Support Program led to additional costs, including voluntary retirement and overseas reforms.

• Interim dividend of ¥19 per share maintained; share buybacks and retirements totaled up to ¥52.4 billion.

Financial highlights

• Gross profit rose 9.6% year-over-year to ¥423.2 billion, with gross margin at 35.2%.

• Selling, general, and administrative expenses increased 13.6% to ¥416.4 billion.

• EPS for the half year was ¥15.61, down from ¥25.63 year-over-year.

• Free cash flow improved to ¥24.9 billion, up ¥43.8 billion year-over-year.

• Cash and cash equivalents at period end rose to ¥197.7 billion, up ¥44.7 billion year-over-year.

Outlook and guidance

• FY2024 sales forecast revised up to ¥2,550 billion (+8.6% YoY), but operating profit guidance cut to ¥52 billion (-16.2% YoY) due to project costs.

• Net profit forecast lowered to ¥38 billion; EPS at ¥64.78.

• Interim and full-year dividend plans unchanged at ¥19 and ¥38 per share, respectively.

• Office Printing hardware sales expected down 1%, non-hardware down 3% from FY2023.

• Assumed FX rates for FY25: ¥148.86/USD, ¥160.51/EUR.