Japan printing giant Epson eyes growth in Middle East, Africa -CEO

SEIKO EPSON

30/10/2023 05:06

By Rocky Swift and Miho Uranaka
       TOKYO, Oct 30 (Reuters) - Printing giant Seiko Epson
 6724.T  is betting on growth in the Middle East and Africa as
demand ebbs in its home market of Japan and other developed
nations, its chief executive said.
    The company got a boost in sales during the COVID-19
pandemic as the push toward working from home increased demand
for personal printers. But Epson faces long-term stagnation in
mature markets as populations decline and digitalisation grows.
    The Middle East, Turkey, and Africa were growth highlights
in fiscal 2022. So following success it had in India with a
specialised subsidiary, the company in August set up a new base
in Dubai to directly manage strategy in the region.
    "Our products are not yet widely distributed in the Middle
East, and there is tremendous potential there," Yasunori Ogawa
said in an interview after the company posted quarterly results
on Friday.
    Operating profit slid nearly 70% in the three months through
September, and the company lowered its full-year forecast to 80
billion yen ($535 million) from earlier guidance of 100 billion
yen.
    Ogawa said the company expects conditions to improve in the
second half as inventory costs abate and a peaking out of
inflation stokes consumer demand.
    To eke out more growth in developed markets, Epson plans to
shift its portfolio more towards commercial and industrial
customers looking to reduce waste.
    The company's PaperLab machines, for example, break down
used office paper to make blank sheets. The machines are large
and are still more expensive to use than standard printers and
new paper, but the company is working to bring down the
operating cost, Ogawa said.
    "We place particular emphasis on the environment and would
like to expand the use of products that can contribute to that,
though it may take some time," he said.

    ($1 = 149.5500 yen)

 (Reporting by Rocky Swift; Editing by Stephen Coates)
 ((rocky.swift@thomsonreuters.com;))