Menicon Company (7780) Q3 2025 earnings summary

Executive summary

• Net sales for 3Q FY2024 rose 4.7% year-over-year to JPY 91.5 bn, driven by strong 1DAY-lens sales in Japan, monthly lens growth in Europe, and price revisions.

• Operating profit increased 13.8% year-over-year to JPY 8.5 bn, supported by SGA control and disciplined spending despite higher investments.

• EBITDA grew 9.6% year-over-year to JPY 14.6 bn, reflecting higher sales and controlled expenses.

• Profit attributable to owners of parent rose 11.8% year-over-year to JPY 5.1 bn, with comprehensive income up 23.6%.

• Strategic acquisitions in Southeast Asia and a partnership in China expanded presence in key growth markets.

Financial highlights

• Gross profit increased 7.9% year-over-year to JPY 49.4 bn, with margin improvement from higher 1DAY-lens sales and price revisions.

• Ordinary profit rose 12.8% year-over-year to JPY 8.2 bn.

• Extraordinary losses of JPY 289 mn were recorded, mainly from European subsidiary restructuring.

• Basic EPS for the period was JPY 67.35, up from JPY 60.16 year-over-year.

• EBITDA margin increased to 16.0% from 15.3% year-over-year.

Outlook and guidance

• FY2024 net sales forecast is JPY 122.7 bn (+5.6% year-over-year), with operating profit expected at JPY 10.0 bn (+11.7%).

• Ordinary profit forecast at JPY 9.5 bn (+15.5%), profit attributable to owners of parent at JPY 7.0 bn (+54.2%), and EPS at JPY 92.19.

• 1DAY-lens sales are projected to grow 11.2% year-over-year, while Ortho-K-related sales are expected to decline 3.3% due to China.

• Q4 operating profit expected to be lower due to China weakness, seasonal promotions, increased R&D, and higher Malaysia plant expenses.

• No change to the consolidated forecast; 4Q expects increased sales in 1DAY-lens and other products, with continued R&D investment.