Nikon: Profit cut in half amid falling demand
Profit was cut in half at the European arm of Nikon amid falling demand in its healthcare business, it has been revealed.
The division of the Japanese giant has reported a pre-tax profit of €13.5m (£11.2m) for the 12 months to 31 March, 2024, according to newly-filed accounts with Companies House.
The latest figure comes after Nikon posted a pre-tax profit of €26.8m in the prior financial year.
The new results also show that its European turnover declined from €478.2m to €475.4m over the same period.
In the UK and Ireland, Nikon’s turnover increased from €56.5m to €58.5m. Germany remained its biggest market despite its sales falling from €107m to €105.1m.
A statement signed off by the board said: “The imaging products business focused on expanding sales of mid- to high-end products and interchangeable lenses targeted for professionals and hobbyists, especially Z8, Zf and other Z series full-frame mirrorless cameras.
“Both unit sales and sales amount remained solid in the digital camera market as a whole, backed by strong sales of the mid- to high-end products.
“In the healthcare business, the life sciences solutions and eye care solutions markets largely remained solid, although a decline in demand due to rising interest rates and other factors was observed.”
The results come after City PM reported in October 2024 that the UK arm of camera and printer giant Canon failed to return to the black during its latest financial year despite sales rising by almost £100m.
The Uxbridge-headquartered division reduced its pre-tax loss from £7.3m to £5.1m in 2023. The last time Canon UK reported a pre-tax profit was the £67.7m achieved in 2021.
The results also showed that the firm’s turnover jumped from £282.3m to £376.5m in the year.
On its outlook, Nikon said: “The digital camera market, especially for mid- to high-end products, is expected to remain solid.
“In the precision equipment business, capital investments in the field related to FPDs [flat panel display], including both mid-to-small size panels, and large-size panels, will be solid.
“In addition, capital investments in the semi-conductor field are also expected to improve from the second half with the positive effects of the recovery in the semiconductor market conditions.
“In the healthcare business, while the market conditions in the fields of life science solutions and eye care solutions are expected to largely remain steady, we need to continue to closely monitor changes in customer behaviour against the backdrop of political and economic trends in each country/
“There are also concerns over a tight supply and demand balance for some electronic components and a cost increase due to price surges.”