Canon has released its financial results for the second quarter of its 2021 fiscal year (Q2 FY2021), revealing better-than-expected performance, particularly within its imaging division.
The data In its investor relations presentation shows Canon’s consumer camera division pulled in 112.1B yen ($1B) in net camera sales—more than double its 55.7B yen ($500M) in sales in the same quarter last year. Granted, Q2 FY2020 was when COVID-19 was hitting much of the world the hardest, this recovery is even better than Canon expected.
This increase is also visible in Canon’s operating profit. In Q2 FY2020, Canon’s imaging business has an operating loss of 20.8B yen ($189M); in Q2 FY2021 it saw an operating profit of20.9B yen ($190M).
Canon says sales of its EOS R5 and R6 mirrorless cameras have had a dramatic impact on its financial performance in the first half of 2021.
As we reported on earlier this month, Canon’s imaging business recovery has been so strong in the first half of 2021 that it’s revised its full FY2021 outlook to account for the better-than-expected sales. Previously, Canon said it was expecting its imaging business to yield 393B yen ($3.57B) in net sales throughout FY2021, but it’s upped that figure by nearly 38% to 430.9B yen ($3.9B).
Canon attributes this growth to strong sales of its EOS R5 and R6 mirrorless cameras and has raised its full-year outlook ‘to reflect solid demand.’ Canon specifically references its growing RF lens lineup, which it says will be the ‘driver’ of growth in its full-year outlook.
Inventory levels within Canon’s imaging division have also proven to be steady throughout the first half of FY2021, with 54 days being the average turnaround time for camera and lens units. Canon says this is due to strong sales, but it also hints that there are ‘concerns about parts shortages’ due to the global chip shortage. So it’s possible inventory levels are also being affected by limited supply.
Going forward, Canon says it expects the interchangeable-lens digital camera market ‘to increase slightly compared with the previous year’ and says it ‘will strengthen the competitiveness of its full-frame mirrorless cameras and interchangeable lenses while reinforcing sales promotion efforts amid a shift to mirrorless cameras and improving the product mix.’
You can find all of Canons Q2 FY2021 presentation materials on its investor relations website.