Menicon Company (7780) investor relations material

Executive summary

• Net sales increased 3.4% year-over-year to ¥125,605 million, driven by growth in daily disposable contact lenses and MELS Plan membership, with strong performance in Japan, Europe, and North America.

• EBITDA rose 14.1% year-over-year, reflecting higher gross profit and continued investment for growth.

• Operating profit increased 2.2% to ¥10,236 million, while ordinary profit surged 15.2% to ¥11,021 million, aided by foreign exchange gains.

• Profit attributable to owners of parent grew 5.7% to ¥5,916 million, despite extraordinary losses from impairment in the orthokeratology segment, especially in China.

• Comprehensive income jumped to ¥13,194 million, reflecting significant foreign currency translation gains.

Financial highlights

• FY2025 net sales: JPY 125.6 bn (+3.4% YoY); gross profit: JPY 67.6 bn (+3.9% YoY); operating profit: JPY 10.2 bn (+2.2% YoY); EBITDA: JPY 21.0 bn (+14.1% YoY); profit attributable to owners: JPY 5.9 bn (+5.7% YoY).

• Cost of sales ratio improved to 46.2% (-0.3pt YoY); operating profit margin at 8.1%.

• SGA expenses increased 4.3% YoY, reflecting investments in new plants and personnel.

• Cash and cash equivalents at year-end decreased by ¥9,454 million to ¥32,410 million, mainly due to capital expenditures and treasury share acquisition.

• Dividend per share was ¥28, with a payout ratio of 35.4%.

Outlook and guidance

• FY2026 net sales forecast: JPY 133.0 bn (+5.9% YoY); operating profit: JPY 11.0 bn (+7.5% YoY); EBITDA: JPY 22.6 bn (+7.3% YoY); profit attributable to owners: JPY 6.5 bn (+9.9% YoY).

• Ordinary profit is expected to decrease by 4.7% YoY due to anticipated cost increases.

• Dividend forecast for FY2026 is JPY 28 per share, maintaining a payout ratio around 30%.

• Market growth is expected in the contact lens sector, but risks include rising costs, FX volatility, and inflation.