Menicon Company (7780) Q2 2025 earnings summary

Executive summary

• Net sales for 2Q FY2024 rose 4.2% year-over-year to JPY 60.6 bn, driven by 1DAY-lens and orthokeratology-related sales growth, especially in Japan, Singapore, and Korea.

• Operating profit increased 4.5% year-over-year to JPY 5.5 bn, with EBITDA up 4.4% to JPY 9.5 bn, reflecting sales expansion and price revisions in Japan despite investments for future growth.

• Ordinary profit climbed 13.4% year-over-year to JPY 5.6 bn, aided by foreign exchange gains from yen depreciation.

• Profit attributable to owners of parent grew 9.0% year-over-year to JPY 3.6 bn.

• The company advanced its "Vision 2030" plan, focusing on global leadership in daily disposable and orthokeratology lenses, and expanded its Southeast Asia presence through acquisitions.

Financial highlights

• Gross profit rose 7.7% year-over-year to JPY 32.8 bn, with gross margin at 45.8% (down 1.8pt year-over-year).

• SGA expenses increased 8.4% year-over-year to JPY 27.3 bn, reflecting investments in new plants, personnel, and R&D.

• Basic earnings per share was JPY 47.67, up from JPY 43.69 year-over-year.

• Equity ratio improved to 45.5% from 44.1% at the previous fiscal year-end.

• Cash and deposits at end-2Q stood at JPY 40.5 bn, down JPY 6.4 bn from FY2023 year-end, mainly due to capital investment for 1DAY-lens plants.

Outlook and guidance

• FY2024 net sales forecast unchanged at JPY 122.7 bn; operating profit forecast at JPY 10.0 bn (8.1% margin).

• Gross profit forecast slightly reduced to JPY 64.9 bn; SGA forecast lowered to JPY 54.9 bn.

• Full-year profit attributable to owners of parent forecast at JPY 7.0 bn (+54.2% YoY), EPS JPY 92.20.

• 1DAY-lens sales expected to expand due to increased supply and price revisions in Japan; orthokeratology-related sales forecast to decrease due to slowdown in China.

• No change to previously announced full-year guidance; expects higher cost of sales ratio and lower profit margin in H2 due to sales mix shift.