Financial Highlights

Results for 2Q of FY2024 (from January 1 to June 30, 2024)

During the period from January to June of the fiscal year under review, the Japanese economy continued to recover moderately. The recovery in consumer spending slowed despite the recovery in the domestic travel market, mainly due to increased prices reflecting higher energy and raw material costs. Corporate capital expenditure was robust, chiefly due to replacement investment mainly in the manufacturing industry, which had been postponed because of the COVID-19 pandemic and higher prices and investment in labor savings to cope with the workforce shortage. In particular, appetite for IT investment in financial and manufacturing businesses and a wide range of other sectors was high and remained strong.

Under such economic conditions, the Canon Marketing Japan Group recorded net sales of 318,903 million yen (up 5.3% year on year), primarily attributable to strong sales from SI services and IT infrastructure services against the backdrop of active corporate IT investment.

In term of profit, operating income decreased 3.9% year on year to 26,033 million yen and ordinary income decreased 3.1% year on year to 26,990 million yen. The fall was due to a rise in selling, general and administrative expenses including IT costs, although the sales increase led to growth in gross profit. Meanwhile, interim net income attributable to owners of the parent stood at 20,147 million yen, up 8.0% year on year, after recording extraordinary income from the transfer of shares of A&A Co., Ltd.

Full-year forecasts for the fiscal year ending December 31, 2024

The Group has revised its sales forecast for the fiscal year ending December 31, 2024 in view of the results for the first half and the strong performance of IT solutions in the Enterprise segment.