Consolidated Financial Results
for the Three Months Ended June 30, 2020
TSE 1st Section: Ticker 7780
Key reason
- For the Year Ended March 31, 2020
Net sales : Year on year change (4.1%)
Sales decreased due to COVID-19 outbreak.
The total number of members in MELS Plan 1.33millions 1.31millions : June 30, 2019 / 1.33millions : March 31, 2020
Gross profit : Year on year change (6.5%)
cost of sales ratio: 45.9% → 47.2%
Operating profit : Year on year change +6.6% | |
SGA ratio decreased due to restricted business activities | |
Operating margin : 9.0% → 10.0% | 1 |
Copyright: Menicon Co., Ltd. All rights reserved.
Impact of COVID-19 outbreak
- MELS Plan sales increased steadily from the previous year.
Contact lens and Care products sales are in a recovery trend from June.
YoY change | Monthly sales year on year change |
110% | |
MELS Plan | |
100% |
90%
80%
Total
Contact lens and Care products
70%
Apr. | May | Jun. |
2
Copyright: Menicon Co., Ltd. All rights reserved.
Summary
Fiscal year ended | June 30, 2019 | June 30, 2020 | JPY m | |||
YoY change | ||||||
Net sales | 20,613 | 19,768 | (4.1%) | |||
Cost of sales | 9,460 | 9,337 | (1.3%) | |||
(Cost of sales ratio) | 45.9% | 47.2% | +1.3pt | |||
Gross profit | 11,152 | 10,430 | (6.5%) | |||
Selling, general and administrative expenses | 9,290 | 8,445 | (9.1%) | |||
(SGA ratio) | 45.1% | 42.7% | (2.4pt) | |||
Operating profit | 1,862 | 1,985 | +6.6% | |||
(OP margin) | 9.0% | 10.0% | +1.0pt | |||
Ordinary profit | 1,893 | 2,118 | +11.9% | |||
Profit attributable to owners of parent | 1,242 | 1,387 | +11.7% | |||
Basic earnings per share | JPY35.25 | JPY36.78 | --- | 3 | ||
Copyright: Menicon Co., Ltd. All rights reserved.
Net sales
JPY 19.7 bn
YoY change (JPY 0.8 bn)
(4.1%)
① Contact lens
and Care products
(JPY 1 bn)
②MELS Plan sales
+JPY 0.2 bn
Key reason
- Sales decreased due to COVID-19 outbreak.
- The number of membership increased from the previous year.
4
Copyright: Menicon Co., Ltd. All rights reserved.
Operating profit
JPY 1.9 bn
Gross profit (JPY 0.72 bn)
YoY change +JPY 0.12 bn
+6.6%
Selling, general and
administrative expenses
+JPY 0.84 bn
Key reason
Gross profit decreased due to a decrease of sales and an increase of cost of sales ratio.
SGA expenses decreased as a result of restricted business activity.
5
Copyright: Menicon Co., Ltd. All rights reserved.
Operating profit break down
- Operating profit increased due to a decrease of SGA as a result of
JPY bn
restricted business activity, despite a decrease in gross profit.
+ + +
+
+
SGA +0.84
6
Copyright: Menicon Co., Ltd. All rights reserved.
Net Sales break down
Product and service
JPY m
Fiscal year ended | June 30, 2019 | June 30, 2020 | ||
YoY change | ||||
Net sales | 20,613 | 19,768 | (4.1%) | |
Contact lens | ||||
and | 9,548 | 8,483 | (11.2%) | |
Product | Care products | |||
and | MELS Plan | 10,549 | 10,834 | +2.7% |
service | ||||
Other | 515 | 450 | (12.7%) | |
Note: The amount of "Other" includes the amount of new businesses. | 7 |
Copyright: Menicon Co., Ltd. All rights reserved.
Contact lens and Care products
JPY 8.4 bn
YoY change (JPY 1.06bn)
(11.2%)
- Daily
(JPY 0.33 bn)
- Other contact lens (JPY 1.03 bn)
- Orthokeratology lens +JPY 0.14 bn
- Care products +JPY 0.16 bn
Key reason
①② Sales decreased in Japan and overseas due to COVID-19 outbreak. ③④ Sales in China were robust.
8
Copyright: Menicon Co., Ltd. All rights reserved.
MELS Plan | |||||||
JPY 10.8 bn | ① Daily | ||||||
+JPY 0.28 bn | |||||||
YoY change +JPY 0.28 bn | ② 2WEEKs | ||||||
+2.7% | +JPY 0.06 bn | ||||||
Other | |||||||
(JPY 0.06 bn) | |||||||
Key reason
-
Membership of daily disposable contact lens has increased.
② Membership of 2WEEKs were robust.
9
Copyright: Menicon Co., Ltd. All rights reserved.
Net Sales break down
Geographical information | JPY m | ||||
June 30, 2019 | June 30, 2020 | ||||
Fiscal year ended | |||||
YoY change | |||||
Net Sales | 20,613 | 19,768 | (4.1%) | ||
Japan | 17,924 | 16,677 | (7.0%) | ||
Overseas Total | 2,688 | 3,090 | +14.9% | ||
Europe | 1,560 | 1,611 | +3.3% | ||
North America | 230 | 130 | (43.3%) | ||
Asia ※1 | 828 | 1,251 | +50.9% | ||
Other ※2 | 68 | 96 | +41.1% | ||
Average exchange rate JPY
2019/3 | 2020/3 | |
1Q | 1Q | |
EUR | 122.87 | 118.74 |
USD | 109.67 | 107.38 |
※1 | "Asia" includes sales through domestic sales agencies. | 10 |
※2 | "Other" includes Oceania and Africa etc. |
Copyright: Menicon Co., Ltd. All rights reserved.
Overseas sales
JPY 3.0 bn
YoY change +JPY 0.4 bn
+14.9%
① Europe
+JPY 0.05 bn
②North America
(JPY 0.1 bn)
③Asia
+JPY 0.42 bn
Other
+JPY 0.03 bn
Key reason
-
Europe: The Group included SOLEKO S.p.A. in Italy. ①②Sales decreased due to COVID-19 outbreak.
③ Asia: Orthokeratology lenses and care products sales were robust.
11
Copyright: Menicon Co., Ltd. All rights reserved.
Overseas sales ratio
Europe, 8.2%
North America, 0.7%
Asia, 6.3%
Other, 0.5%
Japan, 84.4%
Overseas sales ratio
2020/3 1Q
13.0%
⇓
2021/3 1Q
15.6%
12
Copyright: Menicon Co., Ltd. All rights reserved.
Forecast of consolidated business results
-
Forecast of consolidated business results for the fiscal year ending March 31, 2021 Net sales : JPY 84.8 bn, Year on year change +0.4%
・MELS Plan:The total number of members in MELS Plan forecast
1.33millions ⇒ 1.35millions
・Contact lens and Care products:In the second half period,
we expect that sales will increase from the previous year. Gross profit : JPY 45.4 bn, Year on year change +0.4%
We predict that cost of sales ratio will be the same as previous year.
Operating profit : JPY 6.8 bn, Year on year change (2.8%)
In the second half, we will engage in business activities aimed at future business expansion.
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Forecast Summary
Fiscal year ended | March 31, 2020 | March 31, 2021 | Change | YoY Change | JPY m | |
Forecast | ||||||
Net sales | 84,519 | 84,839 | +319 | +0.4% | ||
Cost of sales | 39,291 | 39,411 | +120 | +0.3% | ||
(Cost of sales ratio) | 46.5% | 46.5% | 0pt | --- | ||
± | ||||||
Gross profit | 45,227 | 45,427 | +199 | +0.4% | ||
Selling, general and | 38,194 | 38,588 | +393 | +1.0% | ||
administrative expenses | ⇒ | |||||
(SGA ratio) | 45.2% | 45.5% | +0.3pt | --- | ||
Operating profit | 7,033 | 6,838 | (194) | (2.8%) | ||
(OP margin) | 8.3% | 8.1% | (0.2pt) | --- | ||
Ordinary profit | 6,554 | 6,821 | +266 | +4.1% | ||
Profit attributable to owners of parent | 4,060 | 4,256 | +195 | +4.8% | ||
Basic earnings per share | JPY 112.25 | JPY 112.78 | +JPY 0.53 | --- | 14 |
Net sales | ||||||
JPY 84.8 bn | ① Contact lens | |||||
and Care products | ||||||
(JPY 1 bn) | ||||||
YoY change +JPY 0.3 bn | ②MELS Plan sales | |||||
+0.4% | +JPY 1.2 bn | |||||
Other
+JPY 0.1 bn
Key reason
- We predict sales will decrease due to COVID-19 outbreak.
- We anticipate memberships, mainly daily disposable contact lens will increase steadily.
15
Operating profit
JPY 6.8 bn
Gross profit +JPY 0.2 bn
YoY change (JPY 0.19 bn)
(2.8%)
Selling, general and
administrative expenses
(JPY 0.39 bn)
Key reason
We expect that gross profit will be similar to the previous year.
In the second half, we will engage in business activities aimed at future business expansion.
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Annual Sales and Operating Profit
Operating profit
Net sales | JPY bn | |||||||
JPY bn | 80.8 | 84.5 | 84.8 | |||||
76.6 | ||||||||
80 | 72.0 | 8.0 | ||||||
67.3 | ||||||||
62.2 | 63.1 | |||||||
60 | 7.0 | 6.8 | 6.0 | |||||
5.5 | ||||||||
40 | 3.9 | 4.3 | 4.0 | |||||
3.4 | ||||||||
2.8 | ||||||||
20 | 2.0 | |||||||
2.2 | ||||||||
0 | 0.0 | |||||||
2014/3 | 2015/3 | 2016/3 | 2017/3 | 2018/3 | 2019/3 | 2020/3 | 2021/3 | |
Forecast | ||||||||
Net sales | Operating profit |
17
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OP margin/Cost ratio/SGA ratio
OP margin | Cost ratio, SGA ratio | |||||||||
10% | 53.1% | 55% | ||||||||
8.3% | ||||||||||
8% | 51.0% | 50.3% | 6.9% | |||||||
8.1% | ||||||||||
5.7% | 50% | |||||||||
6% | 48.5% | |||||||||
47.1% | ||||||||||
5.4% | 48.0% | 46.5% | 46.5% | |||||||
4% | 5.1% | |||||||||
4.5% | ||||||||||
45% | ||||||||||
46.1% | 46.3% | 46.0% | ||||||||
3.7% | 45.2% | 45.5% | ||||||||
44.5% | 44.6% | |||||||||
2% | ||||||||||
43.2% | ||||||||||
0% | 40% | |||||||||
2014/3 | 2015/3 | 2016/3 | 2017/3 | 2018/3 | 2019/3 | 2020/3 | 2021/3 | |||
OP margin | Cost ratio | SGA ratio | Forecast | |||||||
18 | ||||||||||
Copyright: Menicon Co., Ltd. All rights reserved.
Shareholder Return
- Forecast a dividend payment of ¥28 per share
Dividend per Share | |||||||||||||||||
Dividend Payout | |||||||||||||||||
(JPY) | Ratio | ||||||||||||||||
28 | 28 | ||||||||||||||||
30 | 25 | 28 | 30% | ||||||||||||||
25 | 19 | ||||||||||||||||
20 | 20% | ||||||||||||||||
15 | |||||||||||||||||
10 | 10% | ||||||||||||||||
5 | |||||||||||||||||
0 | 0% | ||||||||||||||||
2017/3 | 2018/3 | 2019/3 | 2020/3 | 2021/3 | |||||||||||||
Forecast | |||||||||||||||||
Dividend per Share | Dividend Payout Ratio | ||||||||||||||||
Note: Dividends are calculated, assuming that the stock split was conducted at the beginning of 2017/3. | 19 |
Copyright: Menicon Co., Ltd. All rights reserved.
Daily disposable contact lens
- Growth strategy of Daily disposable contact lens sales
Promoting the market penetration | Expanding |
in Europa and U.S. | |
Expansion of supplying daily | product line-up |
disposable contact lenses as | |
private-brand products. |
1DAY「Magic toric」
for astigmatism line-up.
Expanding
Expanding
production
sales area
capacity
The expansion of floor area and production
facilities for the expansion of "1DAY Menicon PremiO" production capacity.
20
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Expansion of the European Distribution Center
- It enables to supply products with the increase in distribution volume accompanying the expansion of the disposable lens etc.
- The new facility has over 1.5 times more space than the former facility.
European Distribution Centers;EUDC | 21 |
Copyright: Menicon Co., Ltd. All rights reserved.
Orthokeratology lens
- Strengthen the orthokeratology lens business globally.
●
- Netherlands (Menicon B.V.)
Academic
For suppressing the progression and research of myopia system
systems
●China●
●
- Japan
- Alpha corporation )
Sales | Relationships | |
with partner | ||
structure | α Ortho-K | |
companies | ||
22
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Business strategy in China
- Strengthen contact lens business in China
Wenzhou FocuSee Vision Care, | A business tie-up agreement |
a contact lens factory in China, | concluded with China's Wenzhou |
is made our wholly-owned subsidiary | Medical University |
Wenzhou FocuSee Vision Care relocated to Eye Valley, | Wenzhou Medical University Eye Hospital in China |
Longwan District, Wenzhou Province | 23 |
Copyright: Menicon Co., Ltd. All rights reserved.
Disclaimer on Forward-Looking Statements
- This material includes certain forward-looking statements about the Menicon Group. To the extent that statements in this material do not related to historical or current facts, they constitute forward-looking statements.
- These forward-looking statements are based on the current assumptions and judgments of the Menicon Group in light of the information currently available to it, and involve know and unknown risks, uncertainties and other factors, which may affect the statements made in this material.
Menicon Co., Ltd.
Finance & Investor Relations Dept.
E-mail:menicon-ir@menicon.co.jp
www.menicon.com/corporate/ir/
24
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Menicon Co. Ltd. published this content on 11 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 August 2020 05:03:15 UTC