[JPT]

Ricoh announced their latest financial report on Friday. As usual it does not devote much space to talking about digital cameras, and the structure has changed again to confuse things. However, it does clearly reference "Increased sales and earnings on strong demand for new products (Pentax/GR)"

The report and other materials are available here at Ricoh IR in English.
Investor Relations | Global | Ricoh

There is some commentary on it in Japanese here.
https://digicame-info.com/2022/02/pentaxgr-1.html

It's notable to me that Ricoh has done fine with their actual camera sales at a time when other manufacturers have been talking positively about potential sales, saying the demand is there but their supply is not.

I also think it shows that the recent strategy change is not brought on by a panic about falling sales, but is deliberate decision. As I've said in another thread, I think it is quite a bold decision that could work out very well for them.

[FozzFoster]

"We design new cameras through sheer devotion"

"I like photography so I make a camera"

[NZ_Ross]

Quote from the Consolidated Financial Report notes (p5 Review by Business Segment): In camera business, sales of new products were strong.

page 20 2021 sales in 'Other' Business Group:

Other Group Total sales 15,061 million Yen - which includes digital cameras, 360 degree cameras, environment, healthcare. 1.2% of Ricoh Total Sales

Sales by Region (I have calculated the %, they were not listed in the Financial Report):
Japan 7,073 million Yen (47%)
International 7,988 million Yen (53%)
Americas 3,166 million Yen (21% of total)
Europe, Middle East, Africa 2,716 million Yen (18% of total)
Other 2,106 million Yen (14% of total)

This revenue breakdown of the Other Business Group helps to explain Pentax focus on the home market first - it is almost half their total sales.

[Stefan Jr]

This revenue breakdown of the Other Business Group helps to explain Pentax focus on the home market first - it is almost half their total sales.

Or you could reverse that logic to: Their focus is on the Japanese market, hence the market shares.

Just a tiny example is that in many cases they don't even bother to add subtitles to their Youtube videos. That says a lot actually.
Another factor is of course that it's harder to buy, what's either absent or unfairly priced, in unfavored parts of the sales landscape.
The numbers are absolutely logical.

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Last edited by Stefan Jr; 02-05-2022 at 02:17 AM.

[beholder3]

it does clearly reference "Increased sales and earnings on strong demand for new products (Pentax/GR)"

Pretty interesting.

If you look at some others, they just published their Q3 results as well:

• Sales: ... Decrease in sales of ..., digital cameras and smartphones
  due to a decrease in unit sales
• OI: ... significant decrease ...: Impact of decreases in unit sales of digital cameras, ...

If I was a tabloid writer I'd now ask if we have already seen the last of the mirrorless cameras.

[IsaacReaves]

I also think it shows that the recent strategy change is not brought on by a panic about falling sales, but is deliberate decision. As I've said in another thread, I think it is quite a bold decision that could work out very well for them.

Agree 100%. Their move corresponds to trends in both retail and JIT and short-run manufacturing. More features and options, more designs, less mass production. Manufacturing automation is bringing the cost of bespoke hardware down considerably and companies are getting better at modularizing platforms. I think boutique brands will begin springing up for bodies in a few years, much like the newer lens players like 7artisans, Lens Baby, and other small firms that have profited from the Lomography community.

Manufacturing is evolving to reflect the dominance of e-commerce and online shopping in retail sales. Its' a win win situation really, but the collapsitarians / doomers love singing from the rooftops.

[Mistral75]

(...)

This revenue breakdown of the Other Business Group helps to explain Pentax focus on the home market first - it is almost half their total sales.

I'm afraid it does not. Ricoh Imaging is only a small portion of the 'Other' segment. The latter includes several activities which are mainly domestic (environment including new materials and energy harvesting, healthcare, and more).

Similarly:

• The sales of the Other segment went down 26%. Does it mean that Ricoh Imaging sales went down? No.
• The Other segment reported an increased loss. (44.6% of sales, no less!) Does it mean that Ricoh Imaging is losing money, even more than the year before? No.

A few examples of the so-called key new businesses included in the Other business group (I'm quoting from the report):

• PLAiR, a new plant-derived material Proprietary foaming technology ensures flexibility and strength and helps achieve zero-carbon society
• Lithium-ion secondary cells manufacturing solution World’s first rechargeable inkjet battery paves the way to wearables in various sizes and shapes
• Social infrastructure inspection services Camera technology measuring depth of field liberates workers from hazards associated with working at heights

[ffking]

PLAiR, a new plant-derived material Proprietary foaming technology ensures flexibility and strength and helps achieve zero-carbon society
Lithium-ion secondary cells manufacturing solution World’s first rechargeable inkjet battery paves the way to wearables in various sizes and shapes
Social infrastructure inspection services Camera technology measuring depth of field liberates workers from hazards associated with working at heights

Thanks for draing them out - really interesting to get a broader picture of what Ricoh is up to - and those are forward looking schemes

[biz-engineer]

Financial reports aren't detailed enough to provide exactly how much revenue come from sales of Pentax cameras. Usually camera sales are at maximum when a new camera is released. Camera sales can only have increased in 2021, because Ricoh released K3 III and GRIII , and no new cameras in 2019 and 2020. If no new camera(s) is(are) released in 2022, sales will be down again. Most likely revenues from Pentax cameras look like roller coaster, up, down, up, down, up down...up., giving adrenaline surge to financial controllers.

[reh321]

Financial reports aren't detailed enough to provide exactly how much revenue come from sales of Pentax cameras. Usually camera sales are at maximum when a new camera is released. Camera sales can only have increased in 2021, because Ricoh released K3 III and GRIII , and no new cameras in 2019 and 2020. If no new camera(s) is(are) released in 2022, sales will be down again. Most likely revenues from Pentax cameras look like roller coaster, up, down, up, down, up down...up., giving adrenaline surge to financial controllers.

Too early in the year to make any speculations.
One could just as easily say “If new cameras are released in 2022, …..”

[RGlasel]

Ricoh Imaging is only a small portion of the 'Other' segment.

And "Other" is a declining part of Ricoh Company in total, dropping from 1.7% of sales to 1.2% of sales year over year. Ricoh Imaging is such a small part of Ricoh that the parent company's performance has no impact on the manufacturing and sales of cameras and lenses. Pentax and Ricoh GR products are a vanity project.

I find it interesting that Ricoh Company seems to have successfully transitioned from a physical office-centric company to a diversified conglomerate of digital services for corporate and public institutions and specialized manufacturer for commercial and industrial customers utilizing technology developed for the old office-centric company; but that is completely off topic for this forum.

[normhead]

Ricoh announced their latest financial report on Friday. As usual it does not devote much space to talking about digital cameras, and the structure has changed again to confuse things. However, it does clearly reference "Increased sales and earnings on strong demand for new products (Pentax/GR)"

The report and other materials are available here at Ricoh IR in English.
Investor Relations | Global | Ricoh

There is some commentary on it in Japanese here.
??????????PENTAX/GR?????????? - ????info

It's notable to me that Ricoh has done fine with their actual camera sales at a time when other manufacturers have been talking positively about potential sales, saying the demand is there but their supply is not.

I also think it shows that the recent strategy change is not brought on by a panic about falling sales, but is deliberate decision. As I've said in another thread, I think it is quite a bold decision that could work out very well for them.

The important part.

"Increased sales and earnings on strong demand for new products (Pentax/GR)"

The unimportant part... everything else that follows in the thread.

Thanks for the important part.

[NZ_Ross]

A few examples of the so-called key new businesses included in the Other business group (I'm quoting from the report):

Thanks, I also read the whole report. Ricoh are doing some interesting stuff, even if only at the margins of their business

They don't break the imaging numbers out, unless it is somewhere else, so factual detailed analysis of year on year imaging trends isn't possible.

What I find interesting, living in New Zealand (and not the USA like many on this forum), is how Japanese centric Ricoh imagining is.

Down here in NZ we are used to being a small appendage of the world that no one thinks of other than as a hobbit hole to escape to in a doomsday scenario, so we are never too worried about being completely ignored, as it is the normal state here

I find the Ricoh financials interesting information, and relatively good news regarding cameras/imaging, and it helps me better understand Ricoh Imaging's current trends and directions, so all good.

Ross

[VSTAR]

This is complete heresy! Every internet site states Ricoh has either disappeared or is about to be gone. This is going to drive people crazy! Maybe Ricoh actually understands their current market even if users in NA and Europe disagree. The good news is that we can expect more products from Ricoh.

[mlt]

Looks like Ricoh was wise to not invest time and money in a booth at CP+ this year. Just saw that the in-person event has been cancelled and will be a virtual event only again due to Covid. See https://digicame--info-com