Brother Industries, Ltd., headquartered in Nagoya, Japan, is a multinational electronics and electrical equipment company with a diverse product portfolio that includes printers, multifunction printers, sewing machines, and machine tools. The company operates globally, serving markets across the Americas, Europe, Asia, Oceania, the Middle East, and Africa.
Financial Performance
In the fiscal year ending March 31, 2024, Brother Industries reported steady sales revenue of ¥822.9 billion (approximately $6.17 billion), maintaining a consistent performance compared to the previous year. However, the company experienced a 10.1% decline in operating profit, amounting to ¥49.8 billion (approximately $373.5 million), and a 19% decrease in net income, totaling ¥31.6 billion (approximately $237 million).
Business Segments
- Printing & Solutions (P&S): This segment demonstrated significant growth, with sales reaching ¥514.9 billion (approximately $3.86 billion) and segment profit increasing to ¥62.5 billion (approximately $468.75 million). The growth was driven by higher consumables sales and efficient cost management, which effectively offset challenges in hardware sales.
- Domino Business: Specializing in coding, marking, and digital printing technologies, this segment saw sales revenue increase to ¥109.6 billion (approximately $822 million), driven by strong consumables sales despite a decline in hardware sales due to decreased demand for capital investments. However, segment profit decreased due to higher selling, general, and administrative costs resulting from enhanced sales activities and updates to backend business systems. Additionally, a significant impairment loss was recorded on a portion of goodwill due to the ongoing impact of currency fluctuations and a challenging market environment.
Sustainability Initiatives
Brother Industries has been recognized as a "Leader" in the "IDC MarketScape for Worldwide Sustainability Programs and Services Hardcopy 2023 Vendor Assessment." The company's commitment to sustainability is outlined in its "Brother Group Environmental Vision 2050," which focuses on reducing CO₂ emissions, promoting resource circulation, and conserving biodiversity. Initiatives include recycling toner cartridges, using recycled materials in products, and installing solar panels at manufacturing facilities.
Market Position and Outlook
Brother Industries maintains a strong market position in the printing and solutions sector, particularly among small office/home office (SOHO) and small-medium business (SMB) markets. The company's products are recognized for their eco-friendly features, helping customers reduce their environmental impact. Looking ahead, Brother Industries aims for revenue growth to ¥880 billion (approximately $6.6 billion) in fiscal year 2024, emphasizing expansion in the machinery sector while maintaining profitability in printing and communications. The company plans to raise the annual dividend to 100 yen per share for FY2024, marking a 16-yen increase from the previous year.
