Menicon Company (7780) Q1 2025 earnings summary

Executive summary

• Net sales rose 6.0% year-over-year to JPY 30.2 bn, driven by strong 1DAY-lens, orthokeratology-related sales, price revisions, and increased MELS Plan members, especially in Japan and Asia.

• Operating profit increased 2.4% year-over-year to JPY 2.7 bn, with margin slightly down due to higher SGA from growth investments.

• Profit attributable to owners of parent grew 11.9% year-over-year to JPY 1.8 bn.

• Ordinary profit surged 14.7% year-over-year to JPY 2.7 bn, aided by foreign exchange gains.

• Comprehensive income jumped 40.9% year-over-year to JPY 4.9 bn, reflecting strong foreign currency translation gains.

Financial highlights

• Gross profit rose 9.6% year-over-year to JPY 16.5 bn; cost of sales ratio improved by 1.8pt to 45.2%.

• EBITDA increased 3.6% year-over-year to JPY 4.7 bn; EBITDA margin at 15.4%.

• SGA expenses up 11.1% year-over-year, reflecting investments in new plants, personnel, and R&D.

• Total assets grew to JPY 183.3 bn as of June 30, 2024, with net assets at JPY 84.2 bn and capital adequacy ratio of 44.6%.

• Basic earnings per share increased to JPY 23.18 from JPY 20.75 year-over-year.

Outlook and guidance

• Full-year FY2025 guidance unchanged: net sales JPY 122.7 bn, operating profit JPY 10.0 bn, profit attributable to owners JPY 7.0 bn, EPS JPY 92.22.

• 1Q progress rates: net sales 24.6%, operating profit 26.8%, profit attributable to owners 25.2%.

• Revenue growth expected from price revisions in Japan and global expansion of daily disposable contact lenses.

• Continued investment in production, logistics, and workforce to support mid- to long-term growth.

• SG&A expenses to be properly controlled despite ongoing investments.