Growth in the Contact Lens Care Products Business

「Net sales and gross profit increased. However, operating profit declined year on year because selling, general and administrative expenses increased due to higher research and development expenses associated with clinical trials, higher personnel expenses resulting from staff expansion and improved compensation, and other factors.」

「As a result, operating income was ¥1,439 million, down 7.8% from the previous fiscal year, ordinary income was ¥1,406 million, up 5.5%, and net income attributable to owners of the parent was ¥1,135 million, up 4.0%.」

「As a result of these business activities, consolidated revenue for the interim period increased 1.9% year on year to ¥17,144 million. Domestic sales increased from the same period of the previous year despite the continuing impact of delivery delays, while overseas sales were affected by lower sales volumes resulting from China's economic slowdown and continuing delivery delays for products sold overseas. Profit margins improved due to lower costs from improved yields and the price increases implemented from July 2025. As a result, operating income was ¥1,132 million, up 29.4% year on year, ordinary income was ¥1,124 million, up 47.1%, and interim net income attributable to owners of the parent was ¥831 million, up 51.6%.」

「As a result of these business activities, although domestic and overseas demand for contact lenses continued to grow steadily during the consolidated fiscal year, it took time to achieve production in proportion to the expansion of production facilities. In addition, machinery trouble at existing production facilities that arose in the second quarter and continued to affect operations from the third quarter through the beginning of the fourth quarter, although now stabilized, caused production volumes of products, particularly the Pure series, to stagnate. As the Company was unable to supply products as planned, revenue increased only 2.6% from the previous fiscal year to ¥33,231 million. Operating income was ¥1,562 million, down 23.8%, ordinary income was ¥1,333 million, down 35.3%, and net income attributable to owners of the parent was ¥1,092 million, down 44.4%.」

「Revenue increased 5.5% year on year to ¥16,828 million. Operating income was ¥874 million, down 33.1% year on year, ordinary income was ¥764 million, down 44.1%, and interim net income attributable to owners of the parent was ¥548 million, down 33.7%.」

「As a result of these business activities, consolidated revenue for the cumulative third quarter increased 6.4% year on year to ¥24,128 million, mainly because domestic contact lens sales grew. Profitability also benefited from economies of scale as revenue and production volumes increased, resulting in a lower cost ratio. In addition, gross profit increased due to the effects of price revisions implemented since the second quarter of the fiscal year ended March 2023, resulting in operating income of ¥1,818 million, up 124.8% year on year, ordinary income of ¥1,803 million, up 125.0%, and net income attributable to owners of the parent of ¥1,234 million, up 358.7%.」

「As a result of these business activities, consolidated revenue for the cumulative second quarter increased 7.1% year on year to ¥15,947 million, mainly because demand for contact lenses in Japan continued to grow steadily. Gross profit increased due to higher revenue, a lower cost ratio resulting from increased production volumes, and the effects of price revisions implemented since the second quarter of the fiscal year ended March 2023. Selling, general and administrative expenses were also appropriately controlled, resulting in operating income of ¥1,307 million, up 173.9% year on year, ordinary income of ¥1,367 million, up 151.0%, and net income attributable to owners of the parent of ¥826 million, up 519.2%.」

「As a result of these business activities, consolidated revenue for the cumulative first quarter increased 5.1% year on year to ¥7,952 million, mainly because demand for contact lenses in Japan continued to grow steadily. Gross profit also increased as the rise in revenue generated economies of scale and the price revisions implemented in the previous fiscal year proved effective. In addition, more overseas subsidiaries began to improve their performance, resulting in operating income of ¥650 million, up 84.6% year on year, ordinary income of ¥709 million, up 73.2%, and net income attributable to owners of the parent of ¥426 million, up 130.7%.」

「Operating income was ¥629 million, down 46.5% from the previous fiscal year, and ordinary income was ¥554 million, down 51.3%. In addition, Contact Lens Precision Laboratories Ltd., a consolidated subsidiary in the UK, continued to experience deteriorating business profitability, and impairment indicators were identified due to declining asset profitability. As a result, the Company recorded an impairment loss of ¥424 million on the intangible assets and goodwill it held, resulting in a net loss attributable to owners of the parent of ¥316 million.」

「Although the Company worked to reduce selling, general and administrative expenses, higher import costs for products due to the weaker yen, and rising energy and raw material prices resulting from Russia's invasion of Ukraine led to operating income of ¥809 million, down 16.4% year on year, ordinary income of ¥801 million, down 13.9%, and net income attributable to owners of the parent of ¥269 million, down 55.7%.」

「As a result of these business activities, domestic contact lens demand showed a steady recovery during the six-month cumulative period of the current consolidated fiscal year, and revenue increased 6.1% year on year to ¥14,884 million. Although the Company worked to reduce selling, general and administrative expenses, operating income fell 36.5% to ¥477 million, ordinary income fell 23.6% to ¥544 million, and net income attributable to owners of the parent fell 52.1% to ¥133 million due to higher import costs caused by the rapid and extreme depreciation of the yen and surging energy and raw material prices resulting from the military invasion of Ukraine.」

「As a result of these business activities, during the three-month cumulative period of the current consolidated fiscal year, domestic contact lens demand showed a steady recovery, and some front-loaded demand ahead of price increases was also seen. Revenue increased 12.4% year on year to ¥7,569 million. Operating income increased 4.5% to ¥352 million, ordinary income increased 25.4% to ¥409 million, and net income attributable to owners of the parent increased 27.7% to ¥184 million, supported by higher revenue and contained selling, general and administrative expenses.」

「Revenue was ¥28,835 million, up 0.8% year on year. Operating income was ¥1,177 million, down 1.6%, and ordinary income was ¥1,138 million, down 6.0%.」

「Operating income fell 30.4% year on year to ¥967 million and ordinary income fell 30.7% to ¥931 million due to depreciation and amortization expense associated with shortening the depreciation period for the current headquarters under the headquarters rebuilding plan, as well as substantial expenses recorded in the third quarter for web advertising and other advertising, sales expenses and personnel costs.」

「As a result of efforts to achieve the new three-year medium-term management plan, domestic contact lens demand showed a steady recovery during the six-month cumulative period of the current consolidated fiscal year. Revenue increased 4.3% year on year to ¥14,024 million. Operating income increased 40.6% to ¥752 million, ordinary income increased 45.3% to ¥713 million, and net income attributable to owners of the parent increased 40.0% to ¥271 million, supported by higher revenue and contained selling, general and administrative expenses.」

「As a result, during the three-month cumulative period of the current consolidated fiscal year, domestic contact lens demand showed a steady recovery, and revenue increased 10.4% year on year to ¥6,733 million. Profit also increased due to higher revenue and contained selling, general and administrative expenses. Operating income increased 542.9% to ¥337 million, ordinary income increased 845.7% to ¥326 million, and net income attributable to owners of the parent was ¥141 million, compared with a net loss attributable to owners of the parent of ¥28 million in the year-earlier period.」

「As a result, during the nine-month cumulative period of the current consolidated fiscal year, performance gradually began to recover as economic activity resumed compared with the period through the second quarter, and revenue was ¥21,201 million, down 11.8% year on year. Profit also recovered as the gross margin improved due to lower manufacturing costs and selling, general and administrative expenses, including advertising, sales expenses and personnel costs, were contained. Operating income was ¥1,390 million, down 4.2%, ordinary income was ¥1,343 million, down 2.9%, and net income attributable to owners of the parent was ¥787 million, up 10.6%.」

「Although selling, general and administrative expenses were reduced by reviewing advertising activities and cutting sales expenses and personnel costs, lower revenue resulted in operating income of ¥534 million, down 58.4% year on year, ordinary income of ¥490 million, down 60.1%, and net income attributable to owners of the parent of ¥194 million, down 65.8%.」

「Although selling, general and administrative expenses were reduced by reviewing advertising activities and cutting sales expenses and personnel costs, the decline in revenue could not be offset. Operating income fell 87.0% year on year to ¥52 million, ordinary income fell 90.5% to ¥34 million, and the net loss attributable to owners of the parent was ¥28 million, compared with a net loss attributable to owners of the parent of ¥55 million in the year-earlier period.」

「Revenue reached ¥31,792 million, up 7.8% year on year and exceeding ¥30 billion for the first time in the Group’s history. Operating income fell 7.5% to ¥1,733 million and ordinary income fell 8.1% to ¥1,691 million due to higher manufacturing costs associated with increasing product variety and other factors. Net income attributable to owners of the parent fell 73.8% to ¥252 million due in part to the recording of extraordinary losses.」

「Revenue increased 8.4% year on year to ¥24,038 million, as sales grew mainly in the core contact lens business despite a decline in front-loaded demand following the consumption tax rate increase during the third quarter. Although higher manufacturing costs associated with expanding sales regions and increasing product variety, including the launch of new products, and higher research and development expenses had an impact, profit remained broadly at the previous year’s level. Operating income increased 4.1% to ¥1,450 million and ordinary income increased 2.1% to ¥1,383 million. Net income attributable to owners of the parent was limited to ¥711 million, down 21.5% year on year, due in part to an impairment loss on investments and loans to SENSIMED AG of Switzerland, which develops and manufactures the sensor-integrated contact lens “Triggerfish System,” recorded as an extraordinary loss in the first quarter. From the perspective of long-term business growth, the Company increased its voting rights in SENSIMED AG to 90.6% of its issued shares in December 2019 through the acquisition of shares from existing shareholders.」

「Revenue increased 15.0% year on year to ¥16,761 million, supported mainly by strong contact lens sales, front-loaded demand ahead of the consumption tax rate increase, and the consolidation contribution from the European company acquired in the fiscal year ended March 2019. Operating income increased 24.0% to ¥1,285 million and ordinary income increased 15.3% to ¥1,230 million, mainly due to revenue growth. Net income attributable to owners of the parent, however, fell 19.5% to ¥568 million because a ¥482 million provision for doubtful accounts was recorded as an extraordinary loss in the first quarter.」

「Revenue increased 7.7% year on year to ¥7,680 million, broadly in line with the initial plan, owing mainly to the consolidation contribution from the European company acquired in the fiscal year ended March 2019, despite weak overseas sales in some markets, including China. Gross margin declined as domestic manufacturing costs rose due to the start of test production of new products and the need to handle high-mix, low-volume production associated with expanded overseas operations. Selling, general and administrative expenses also increased ¥239 million year on year, resulting in operating income of ¥404 million, down 13.2%, and ordinary income of ¥364 million, down 25.8%. In addition, a ¥482 million provision for doubtful accounts was recorded as an extraordinary loss, resulting in a net loss attributable to owners of the parent of ¥55 million, compared with net income attributable to owners of the parent of ¥337 million in the year-earlier period.」

「Although revenue and profit declined from the previous fiscal year, the increases in selling, general and administrative expenses associated with new product launches and progress in internationalizing the business will contribute to strengthening the Company’s long-term competitiveness and expanding its business in Europe and Asia.」

「Revenue for the nine-month cumulative period of the current consolidated fiscal year increased 6.3% year on year to ¥22,186 million, driven by higher contact lens sales in Japan and overseas. Operating income fell 7.7% to ¥1,393 million, ordinary income fell 13.7% to ¥1,354 million, and net income attributable to owners of the parent fell 14.7% to ¥907 million, as selling, general and administrative expenses increased ¥820 million year on year due to aggressive television advertising, higher advertising and promotional expenses associated with new product launches, trial lens costs for introducing new products, and one-time costs related to the acquisition of all shares of a UK contact lens manufacturer.」

「As a result of efforts to achieve the above plan, revenue for the six-month cumulative period of the current consolidated fiscal year increased 5.6% year on year to ¥14,580 million, driven by higher contact lens sales in Japan and overseas. Operating income fell 13.1% to ¥1,036 million, ordinary income fell 14.7% to ¥1,067 million, and net income attributable to owners of the parent fell 19.7% to ¥705 million, as selling, general and administrative expenses increased ¥685 million year on year due to aggressive television advertising, higher advertising and promotional expenses associated with new product launches, trial lens costs for introducing new products, and one-time costs related to the acquisition of all shares of a UK contact lens manufacturer.」

「Revenue for the three-month cumulative period of the current consolidated fiscal year increased 5.2% year on year to ¥7,131 million. Operating income fell 31.9% to ¥466 million, ordinary income fell 28.8% to ¥492 million, and net income attributable to owners of the parent fell 38.7% to ¥337 million, as selling, general and administrative expenses increased ¥480 million year on year due to aggressive television advertising, higher advertising and promotional expenses associated with new product launches, and one-time costs related to the acquisition of all shares of a UK contact lens manufacturer.」

「Contact lens sales performed generally well, and the net incremental effect of the contact lens retail business acquired in February of the previous fiscal year also contributed to revenue, which increased 14.5% year on year to ¥20,869 million for the nine-month cumulative period of the current consolidated fiscal year. Operating income increased 20.4% to ¥1,510 million, ordinary income increased 36.1% to ¥1,569 million, and net income attributable to owners of the parent increased 52.2% to ¥1,063 million, owing mainly to higher revenue and lower costs resulting from improved production efficiency, resulting in higher revenue and profit.」

「Contact lens sales performed generally well, and the net incremental effect of the contact lens retail business acquired in February of the previous fiscal year also contributed to revenue, which increased 14.8% year on year to ¥13,809 million for the six-month cumulative period of the current consolidated fiscal year. Operating income increased 55.7% to ¥1,193 million, ordinary income increased 111.6% to ¥1,251 million, and net income attributable to owners of the parent increased 169.9% to ¥878 million, owing mainly to higher revenue and lower costs resulting from improved production efficiency, resulting in higher revenue and profit.」

「As contact lens sales performed generally well and the consolidation of the contact lens retail business, acquired during the previous fiscal year and included in consolidation from February of that year, contributed to results, revenue for the three-month cumulative period of the current consolidated fiscal year increased 19.3% year on year to ¥6,775 million. Operating income increased 121.0% to ¥684 million, ordinary income increased 320.3% to ¥691 million, and net income attributable to owners of the parent increased 694.4% to ¥551 million, resulting in higher revenue and profit.」

「As a result, revenue for the nine-month cumulative period of the current consolidated fiscal year increased 13.2% year on year to ¥18,227 million. Operating income increased 111.8% to ¥1,254 million, ordinary income increased 113.9% to ¥1,153 million, and net income attributable to owners of the parent increased 147.3% to ¥698 million, resulting in higher revenue and profit.」

「As a result, revenue for the six-month cumulative period of the current consolidated fiscal year increased 15.1% year on year to ¥12,029 million. Operating income increased 114.3% to ¥766 million, ordinary income increased 79.3% to ¥591 million, and net income attributable to owners of the parent increased 108.1% to ¥325 million, resulting in higher revenue and profit.」

「As a result, revenue for the three-month cumulative period of the current consolidated fiscal year increased 16.9% year on year to ¥5,677 million. Operating income increased 225.5% to ¥309 million, ordinary income increased 77.3% to ¥164 million, and net income attributable to owners of the parent increased 182.3% to ¥69 million, resulting in higher revenue and profit.」

「As a result, revenue for the current consolidated fiscal year increased to ¥21,826 million, up 16.5% year on year. Despite higher advertising and promotional expenses and logistics costs associated with the increase in sales, operating income increased 65.4% to ¥895 million, ordinary income increased 75.8% to ¥834 million, and net income attributable to owners of the parent increased 127.6% to ¥492 million, owing mainly to revenue growth.」