Canon’s Imaging Business Soars as Overall Profits Take a Hit

While it may appear that Canon has had a great year in 2024, the company’s latest financial reports from the previous year tell a different story. The company launched the Canon RF 10-20mm f4 L, Canon RF 24-105mm f2.8 L, and the EOS R5 Mk II alongside the EOS R1. However, as per the new report, the company had a decline in operating profit and net income year-over-year. What does that even mean? Read more to find out.

According to the fiscal year report, the company has seen a decline in its profit, thus missing projections. For instance, the company had a net sales of $28.5 billion in 2024, which saw a 7.9% since 2023. However, the operating profit fell 25.5% to $1.77 billion, which affected the net income of the company. The latter saw a decrease of 39.5% from 2023, which noted a decline of over $1 billion. At the same time, the company’s net income for shareholders fell by 37.4% from last year.

The Canon report also adds that the global economy’s recovery has been moderate, but there has been proper consumer spending in the United States. However, the economy has been stagnant in China, which is one of the most important markets for the company. Furthermore, Europe and Japan are okay, but the recovery has been progressing since 2024.

In addition to the slowdown, the company notes that one profitable segment for them has been the camera sector. “For cameras, demand remained solid, mainly for mirrorless cameras,” states the report. “In the Imaging Business Unit, although there was a period of adjustment in the inventory of interchangeable-lens digital cameras at the beginning of the year, the new EOS R1 and EOS R5 Mark II introduced in the second half of the year sold well, as did the entry models EOS R50 and EOS R100. Sales of network cameras also increased for the year as sales recovered from the second quarter when inventory adjustments were carried out,” it further added. It also means that the company saw a total increase of sales by 8.8% year-on-year to ¥937.4 billion, and income before income taxes increased by 5.4% year-on-year to ¥154.3 billion.

In another Q&A around, Canon was asked about its future growth. The company saw a 0.4% rise in 2024, but they predict a 9.3% rise in 2025. To answer this, Canon spoke about their inventor, who has been healthy since the end of 2024. “Additionally, the competitive products that we launched in the second half of last year, namely the EOS R5 Mark II and EOS R1, will contribute to sales growth throughout 2025, leading to an increase in higher-priced model sales and expanding demand for RF lenses,” the company stated. But what is interesting is that they are also thinking to venture into the compact camera business due to ” very strong demand” amidst the young users. So, Canon hopes to increase the production of compact cameras, too, which will lead to better sales. Overall, the issue lies in operating expenses and unfortunate currency exchange conditions. Perhaps, if the yen is stronger, this would result in a more positive out-turn.

In another report by Photo Rumors, Canon further adds that the company was ranked 1st in the US for interchangeable lens cameras, mirrorless cameras, and full-frame mirrorless cameras. This means that sales, after all, is not the issue, but the creation of the devices is. It remains to be seen what Canon manages to achieve next year, but they seem to have finally woken up from a deep slumber.