Canon has released its third quarter (Q3) results for its 2021 fiscal year (FY2021), revealing the current state of the company, including is imaging division. The data in the report shows relatively steady unit sales across the board with healthy year-over-year (YoY) jumps in both revenue and operating profit, despite ongoing supply chain issues.
Starting at the top, Canon’s camera division (including compact cameras, interchangeable lens camera, lenses and camera accessories) pulled in 100.2B yen in revenue and 17.7B yen in operating profit, increases of 9.9% and 42.2%, respectively, compared to Q3 FY2020. This increase in both revenue and operating profit comes despite selling the same number of digital interchangeable lens camera units (640,000) as Q3 FY2020, suggesting that once again the average selling price of each unit is higher.
Canon says digital interchangeable lens camera (DILC) units accounted for 70% of all camera units sold and 90% of net sales from all camera units sold, if you include the sales of interchangeable lenses. So, despite 30% of Canon’s camera sales coming from its compact cameras, those cameras account for just 10% of its net sales, with DSLR and mirrorless cameras and lenses accounting for the rest. This chasm between DILCs and compact cameras is even larger than last year, which saw DILCs make up 65% of Canon’s unit sales.
|A screenshot of Canon’s presentation materials showing the ratio of digital interchangeable lens camera to digital compact camera unit sales.|
Canon cites strong sales of its EOS R5 and R6 mirrorless cameras for its ongoing success, despite being introduced more than a year ago. Canon also says it exceeded its own expectations for RF lens sales, but doesn’t specify by how much in either value or units. In its overview of its Imaging division, Canon says:
‘As for Imaging, the EOS R5 and EOS R6, which are highly competitive products, have maintained strong sales and have become the driving force behind business results, even one year after their launch. Amid challenging conditions surrounding parts procurement, we focused on the production and supply of high-end products and lenses, which enabled us to secure a double-digit profit ratio.’
Regarding the ‘parts procurement,’ Canon says it expects to sell 50,000 fewer units than it originally anticipated for its FY2021, due to ongoing supply chain issues. Canon now projects it will sell 2.95 million digital interchangeable lens camera units, 50% of the 5.9 million units it expects the entire camera industry to sell. Despite the decrease in unit sales, however, Canon has actually increased its anticipated revenue from its camera division 2.25%, upping it to 440.6B yen from the previous 430.9B yen projection Canon had made.
|Canon’s EOS R5 and R6 full-frame mirrorless cameras have been the strongholds in Canon’s digital interchangeable lens camera lineup, with sales continuing to stay steady even a year after their launch.|
In the Q&A session summary included in its Q3 FY2021 report, Canon was asked whether or not it could’ve avoided the supply chain issue. While the question isn’t specific to its imaging division, Canon says it ‘could not avoid the impact of supply chain issues as it was not short term and the disruption was global in scale.’
Canon also reveals that it expects to increase its RF lens lineup to 26 lenses, which means we can expect two more lenses before the end of the year. Currently, 24 RF lenses have been announced, if you include the new RF 5.2mm F2.8 L Dual Fisheye lens.
Overall, it appears Canon’s EOS R5 and R6 camera systems have helped the company stay on pace for its FY2021 projections. Fewer units are expected to be sold, due to supply chain constraints, but those problems are industry-wide at this point and are expected to be resolved over the coming quarters. You can dig into all of Canon’s presentation materials on its Investor Relations website.