FUJIFILM Fiscal Year 2020/3 Results: Firm X-T4 and X-S10 Sales Push Operating Income Back in the Black to Same Level of Last Year!

February 9, 2021
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Fujifilm Fiscal Year 2020/3 Results

The results for the third quarter of the fiscal year 2020 have now been published by Fujifilm (Q1 report here, Q2 report here). FYI, the fiscal year in Japan starts on April 1 and ends on March 31.

It’s a year devasted by COVID-19, hence also Fujifilm suffered in some areas. But there are also good news. Let’s go with order.

The biggest hit in the imaging division has been taken by broadcast and cinema lenses. Not really a surprise, given many big events being canceled, such as the Toyko 2020 Summer Olympics.

Good news comes from the X series, where “firm sales” of the Fujifilm X-T4 and Fujifilm X-S10 allowed revenue for the third quarter to recover to the same level of last year.

A pity Fujifilm is still not able to decently ship the Fujinon XF50mm f/1.0, which still is mostly back-ordered. If they’d been able to match the initial high demand for that lens, that could have shown up with even better numbers.

Crossing fingers the same shipping-desaster won’t happen with the Fujifilm GFX100S and Fujinon GF80mmF1.7, as they also enjoy an astonishing high amount of pre-orders, and if Fujifilm will be able to deliver within March, then they will have decent imaging division figures to show for the end of the fiscal year compared to other brands (Fujifilm manager already hinted they are doing better than the rest).

The instax system keeps going strong.

Fujifilm X-S10: BHphoto, AmazonUS, Adorama, Moment, Focuscamera
Fujfiilm X-T4: BHphoto, Adorama, AmazonUS
Fujifilm GFX100S: BHphoto / AmazonUS / Adorama / Focuscamera / Moment
Fujinon GF80mmF1.7: BHphoto / AmazonUS / Adorama / Focuscamera / Moment

Fiscal Reports

Here some excerpts:

In the photo imaging business, in addition to lower demand for color paper, stay-at-home orders, business shutdowns including temporary closure of retailers amid COVID-19 caused overall revenue to decline, but sales of instant photo systems increased YoY in the third quarter. Sales of the instax mini 11 and the instax mini Link smartphone printer were favorable
In the electronic imaging business, despite the severe climate in the entire digital camera market, firm sales of the FUJIFILM X-T4 and FUJIFILM X-S10 mirrorless cameras allowed revenue for the third quarter to recover to the same level as last year
In the optical device business, revenue decreased, reflecting lower sales of broadcast and cinema lenses as a result of the self-restraint of events.

Conclusions:

Although revenue fell due to the impact of stay-at-home orders and the self-restraint or cancellation of events worldwide under COVID-19, sales of instant photo systems were up YoY in the third quarter
The operating margin for the third quarter recovered to the same level as last year, allowing operating income for the 9 months to return to being in the black.

Imaging Solutions

In the Imaging Solutions segment, consolidated revenue amounted to ¥218.6 billion (down 17.9% year-over-year).

Consolidated operating income amounted to ¥14.1 billion (down 48.5% year-over-year).

In the photo imaging business, revenue decreased due to the impact of voluntary restraint and cancellation of events resulting from the spread of the COVID-19 pandemic, but sales of instant photo systems […] increased in the third quarter compared year-over-year. […] sales recovered, particularly in Europe and China. Sales were strong for the instax mini Link smartphone printer, […] Sales of the instax mini 11 instant camera, launched in March 2020, also achieved a solid increase in sales, and in November 2020, we launched the instax SQUARE SQ1, an entry model compatible with the popular square format film. Also, in April 2020, new personalized features were added to the Year Album, a photo book service, enabling automatic selection and layout of photos according to individual interests and preferences through the use of AI technology. The new features have been well received by users. We will continue communicating to the world the traditional photographic values of “shooting, preserving, displaying, and gifting,” as well as delivering innovative, user-friendly products and services, thereby meeting increasingly diversified customer needs.

In the optical device and electronic imaging business, revenue from the electronic imaging field, which plunged in the first half due to reduced demand resulting from the COVID-19 pandemic, recovered year-over-year in the third quarter. Regarding mirrorless digital cameras, sales of the FUJIFILM X-T4, launched in April 2020, increased steadily, and sales of the FUJIFILM X-S10, launched in November 2020 with highly regarded features including compact size, easy-to-hold grip and powerful image stabilization, were strong mainly in Japan and China. In July 2020, we launched the FUJINON Lens GF30mmF3.5 R WR as a new interchangeable lens for the GFX Series, providing a compact wide-angle prime lens that delivers ultra-high resolution. As interchangeable lenses for the X Series, we launched the FUJINON Lens XF50mmF1.0 R WR, a large-diameter mid-telephoto prime lens, in September 2020, and the FUJINON Lens XF10-24mmF4 R OIS WR, a ultra-wide angle zoom lens, in November 2020, thereby enhancing the appeal of our products as systems through an extensive lineup of lenses. Going forward, we will continue providing value-added products and revitalizing the market, along with providing the pleasure of taking photos.

In the optical device field, sales of monitoring zoom lens and integrated surveillance camera were favorable, but revenue of broadcast and cinema lenses decreased due to the cancellation of sports and events as well as suspended filming of television dramas and movies. Aiming to achieve business growth in this field, we are expanding our business domains and developing innovative products that satisfy the diverse needs of the market, including the development and launch of ultra-short-throw projectors and long-throw security cameras, and the new development of multispectral camera systems