Star Micronics ANNUAL REPORT 2022
Review of OperationsSPECIAL PRODUCTS
Point-of-sale (POS) printers used at such places as restaurants are the main products in the Special Products Segment. In recent years, demand for mobile POS (mPOS) printers that are compatible with tablet terminals, smartphones, and other devices has been expanding. mPOS products are available under the mCollection™ brand, which not only includes printers but also such peripheral devices as cash drawers. Through the Special Products Segment, the Company also offers Star Micronics Cloud Services (SMCS), a cloud-based service for printers.
Business Environment and Results in 2022
As far as POS printers in 2022 are concerned, despite the impact of factors such as delays in the supply of products attributable to shortages in the procurement of components and parts as well as disruptions to logistics, sales increased. In addition to the ongoing period of favorable market conditions, which reflected continued brisk mPOS demand in each market, this increase in sales was largely due to the impact of the yen’s depreciation. Looking at trends by geographic region, sales in the U.S. market increased substantially. While delays in the supply of products had a negative effect, this was largely attributable to the impact of the yen’s depreciation. In the European and domestic markets, conditions were favorable. Sales, however, decreased owing to delays in the supply of products.
Accounting for each of the aforementioned, net sales in the Special Products Segment increased 15.3% compared with the previous year, to ¥17,959 million (US$135,030 thousand). From a profit perspective, operating income grew 64.5% year on year, to ¥3,754 million (US$28,225 thousand).
* The consolidated fiscal period for the fiscal period ended December 31, 2018 is based on and presented for a 10-month period for the Company and consolidated subsidiaries in Japan and a 12-month period for overseas consolidated subsidiaries.
SPECIAL PRODUCTS SEGMENT SALES
BY GEOGRAPHICAL REGION(Billions of yen)
Outlook for 2023 and Business Strategies
In the Special Products Segment, sales are projected to stall in the U.S., but remain firm in the European market in 2023. Taking into account these and other factors including the impact of foreign currency exchange rates, sales in this segment are forecast to remain at the same level as current fiscal year.
In its mainstay mPOS lineup, Star Micronics will launch sales of a new label printer targeting the food delivery sector in mid-2023. As a printer that can accommodate linerless label paper, this new product is environmentally friendly. Unlike conventional printers, this new product also supports strong adhesive linerless labels. With this initiative, Star Micronics aims to increase further its market share in the growing label printer market.
From a business results perspective, net sales are projected to come in at ¥17,740 million, down 1.2% compared with the current fiscal year. On the earnings front, operating income is forecast to decline 20.1% year on year, to ¥3,000 million.
| 2021 | 2022 | Change | |
|---|---|---|---|
| The Americas | 360 | 341 | -5.3% |
| Europe | 164 | 135 | -17.7% |
| Asia | 48 | 50 | 4.2% |
| Japan | 61 | 56 | -8.2% |
| Total | 634 | 583 | -8.0% |
Label Printer mC-Label3 released!
Added to the mCollection of peripheral equipment for stores, Star Micronics will commence sales of the thermal 3-inch label printer, mC-Label3, in Japan and overseas from mid-2023. Label solutions linked to store systems are indispensable in the food delivery, takeout, and related scenes. While Star Micronics has to date sold printers that are compatible with weak-adhesive linerless label paper, the Company has received comments that stronger adhesives are required depending on the usage scene. The mC-Label3 supports strong adhesive linerless labels, which have been difficult to handle with small printers, while realizing high-speed printing. By supporting various types of paper, the mC-Label3 can be used for a wide range of applications, such as price tags and shipping labels, not to mention product labels. The mC-Label3 will be sold in the Americas, Europe, and Asia, including Japan, with the aim of further increasing market share in the growing label printer market.
