Canon Australia posts $39m profit in 2012

Market leader Canon Australia Ltd had total sales of $722.2 million for the year ending December 31, 2012 and profit before tax of $38.6 million, according to a financial report prepared by Ernst & Young and lodged with ASIC in April.

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The $722 sales result was a slight reduction on 2011 sales of $731.6 million. The figures here relate to Canon Australia alone, rather than the consolidated group, which includes Canon NZ, Canon’s Australian and New Zealand finance companies, Lamberts Business Systems (New Zealand), and Oce Australia – acquired in October 2012. Sales for the consolidated group were $754.2 million.

Cost of sales – the cost of goods (cameras, photocopiers, etc) purchased primarily from other Canon entities to on-sell in the Australian marketplace – was $480.3 million. This is the sum from which Canon Japan takes a profit for goods shipped to the Australian market, separate to Canon Australia’s business contribution.

Cost of sales was down almost $50 million on the 2011 figure, possibly indicating that Canon Australia has been successful in re-negotiating cost of goods purchased from Canon Japan. (Canon began to reduce prices on some popular cameras through 2012). This left Canon Australia with a gross profit of $240.1 million, an improvement of around 20 percent on 2011 ($202 million gross profit in 2011) Take away operating expenses such as wages and salaries, advertising and marketing, etc, and Canon Australia achieved a Profit before Income Tax of $38.6 million. The wages and salary bill was another notable reduction from 2011 to 2012, coming down from $95.3 million to $91.4 million.

Canon’s $39 million profit in 2012 contrasts with a loss of over $9 million in 2011. It’s worth noting that turnaround was achieved on lower total sales.

The consolidated Canon group employs almost 1200 Australians and New Zealanders. Photo Counter asked Canon Australia what proportion of sales the photographic part of Canon accounts for (cameras, camcorders, lenses, inkjet printers, etc) ¬†and was directed to the Canon global report, which indicates that just over 40 percent of Canon’s business is in imaging.

Canon lists assets of just over $650 million, including $67.3 million in cash.


3 thoughts on “Canon Australia posts $39m profit in 2012

    • Thanks Pete. The report didn’t include the profit after tax as I made a bit of a value judgement on what was of interest and relevance to the photo industry as a whole, but since the question has been asked direct, and the information is in the public domain, Canon Australia apparently paid no income tax, but in fact received a tax credit for $1 million! Profit AFTER tax was $40 million. (‘Go figure’, as they say.) However, the consolidated group did pay some $7 million in income tax.

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