Canon Reports Q4 Net Loss Amid Rising Sales

Canon sees mixed results in Q4, net loss of 58.54B yen starkly contrasts last year’s profit, despite a 9% rise in net sales. The outlook remains optimistic with projected revenue growth for the year.

Date: 30-01-2025

AI Rating: 5

Performance Overview: Canon Inc. reported a significant fourth-quarter net loss of 58.54 billion yen, compared to a net profit of 80.57 billion yen in the same quarter of the previous year. This indicates a stark deterioration in financial performance.

Operating Loss: The operating loss amounted to 16.88 billion yen, down from an operating profit of 115.99 billion yen a year ago. This highlights a concerning trend in Canon's operational efficiency.

Net Sales Growth: On a positive note, Canon's net sales saw growth of 9% year-over-year, reaching 1.27 trillion yen, up from last year's 1.16 trillion yen. This growth suggests that Canon's products remain in demand, despite the overall loss.

Future Outlook: Looking ahead, Canon projects full-year consolidated net sales of 4.74 trillion yen, which reflects a year-on-year increase of 5.0%. Additionally, the company expects operating profit to surge to 519.0 billion yen (an increase of 85.5%) and net income to rise to 364.0 billion yen (a substantial increase of 127.5%). This forecast is indicative of a strong recovery and potential for profitability in the upcoming fiscal year.

Canon's long-term business plan aims to further enhance profitability, anticipating record sales for the second consecutive year by 2025. This could instill confidence among investors as a commitment to improvement is highlighted.

Stocks: CAJ