Leica Camera AG records strong revenue growth for the 2016/2017 financial year and bucks the downward trend in the camera market

Leica camera issued an official press release about strong revenue growth of more than 6% for the 2016/2017 financial year. The company claims to have bucked the downward trend in the camera market which declined by around 10% in the same period. Leica's CEO Matthias Harsch expects a record-breaking result for the 2017/2018 financial year. Here is the full press release:

Leica Camera AG records strong revenue growth for the 2016/2017 financial year and bucks the downward trend in the camera market

The Leica Camera Group achieved revenue of almost 400 million euros in the past financial year 2016/2017 (31 March 2017) and can therefore look back very positively on the previous twelve-month period. With strong revenue growth of more than six percent, Leica bucked the overall downward trend in the global camera market, which declined by around 10 percent in the same period.

In the first few months of the current financial year 2017/2018, cumulative growth stands at 15 percent, thus underscoring the positive global performance of Leica Camera AG. Despite a market environment that remains challenging, the CEO of Leica Camera AG, Matthias Harsch, once again expects a record-breaking result for the 2017/2018 financial year. As a result, the revenue of Leica Camera AG has increased more than fourfold since anchor investor and majority shareholder Dr Andreas Kaufmann came on board in 2004.

The main driver of growth is the systematic realignment of the company that has taken place in recent years. In particular, the setting up of an in-house Retail Distribution division has made a major contribution to revenue growth. Leica now has 90 monobrand stores around the world, which are vital in terms of promoting brand experience in the context of photography. ‘China is our number-one growth market,’ says Matthias Harsch, who is planning 20 to 30 new stores in the country alone. The Group is now strengthening its presence in the service sector with the Leica Akademie brand in order to boost the appeal of photography amongst younger target groups.

The extremely successful technology and brand partnership with Chinese company Huawei in the field of mobile phone photography makes Leica one of the world’s leading providers of smartphone lens applications, a burgeoning technology segment that serves as a global basis for new product ideas and applications in photography.

The entry of Leica into the eyewear segment (glasses) – a move that was completed in 2017 – offers further potential for strong revenue growth in the years ahead. Operating under the name of Leica Eyecare, the company will systematically tap into this global market in conjunction with its technology partner Novacel.

Related posts:

Leica’s basic financials for the past 5 years

Leica with record sales, increased revenue for the 2015/2016 fiscal year

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  • eric

    Not surprised, the M10 definitely made Leica’s year, proves if you make a great product it will bring in revenue. It will be interesting to see there returns next year though. Im not sure i agree they need to open tons of stores everywhere, 20 stores in china seems excessive even if its big. I would like to see them invest more in the online retail experience, at least as an option.

    • raziel28

      It works for Leica, on the other hand Nikon has made 3 great cameras in a row and that doesn’t help them…

      • eric

        Nikon and Leica are different companies, so hard to compare. Nikon is huge and mass marketed while Leica is small and tailored to a certain segment of photography. As to what great is, that’s mostly subjective. Having used Nikon before I can say I haven’t been thrilled by there newest cameras. Still big and bulky which doesn’t interest me anymore. Sure they take nice photos but all cameras do nowadays. Most of us are really looking for other specs. Size is a big one. This is where Leica excels. And the newest M was there slimmest digital version yet.

        • I have two system – Nikon and Leica M. Leica can be limiting sometimes (Astro photography, tele photo for example) and sometimes I just need fast AF. When I travel or go on vacation, I always take my Leica. When I want to be 100% sure I get the shot, I take my Nikon.

          • eric

            Yeah, I agree that each offer something different which is probably why they compliment each other when you own both. For me, most of what I shoot can be done with a Leica M but I agree there are still some things it does not do well. Im hoping at some point the SL system will evolve enough to compliment the M like another dslr would. I am curious to see what happens with an SL2.

          • Yes, I agree. Between Nikon and Leica I really don’t care what other companies are offering. At the end of the day, just like with everything else, every choice is a compromise. I have no plans on changing my systems, no matter what Sony will bring to the market.

          • raziel28

            i am (inter alia) a canon slr/dslr, sony milc and fuji+linhof film user.
            i am not sure for the future, but the good thing is that photography makes me happy. the end result is important. so are the cameras, but the creativity is the #1
            any decent camera would satisfy me.
            you shouldn’t care at all. 🙂 although i use canon, nikon’s dslrs are probably the best. On the other hand Leica is the only digital RF manufacturer…
            hobbyist or pro – there are numerous great cameras nowadays. from every brand…
            i follow every company. i’d like to try/own them all! but keep forgetting to play euromillions, regularly! 🙂

      • If I remember correctly, Nikon was still profitable in their latest financial reports. Yes, they are losing market share, but staying profitable.

  • Daryl

    This makes me wonder how well Leica could be doing if it did things differently as recommended by all those that opine about Leica’s buffoonery.

    • Most of the things I see people opining about are Leica’s various refusals to match features or spec with more mass market brands (like an autofocus or EVF M). If they addressed those requests, they would bring themselves into direct competition with companies / products with very different cost/volume/margin assumptions.

      Leica Camera has a strong grasp on clearly differentiated, low volume, high margin products.

      I recall reading a response from one of their senior product people to the effect of “People seem to constantly be asking for all of these features in one camera. They can have that camera, but not from us.”

  • Tim Rule

    Keep in mind that Leica needs to sell 49% of the company …. some of the figures are a bit “selective” 🙂

    • Are you saying that they cooked their numbers in an official press release? I don’t think so.

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