Overview of Results of Operations
In the fiscal year under review, Japanese economy experienced a mild recovery
trend as corporate profits and the employment situation improved. However,
the outlook remains uncertain due to concerns about the situation overseas
including a slowdown in the emerging economies led by China, political
risk in Europe, U.S. policy trends and other factors.
The Rohto Group has moved into new fields with customer-oriented product
development and marketing activities. In its existing categories, the Group
has developed high value-added products in response to changing consumer
needs and endeavored to reinvigorate markets.
In total, net sales decreased 7.4% year-on-year to 154,599 million yen.
In Japan, hay fever products and high-value-added eye drops sold well.
Overseas, sales fell due to the effect of the yen's appreciation and the
strong impact of China's economic slowdown.
Regarding profits, operating income decreased 1.5% year-on-year to 15,451
million yen, due to ongoing up-front investments to enter new business
fields, despite efficient use of selling, general and administrative expenses.
Ordinary income increased 4.1% to 15,964 million yen and profit attributable
to owners of parent rose by 10.0% to a record-high of 10,011 million yen.
Regarding dividends, following the auditing of accounts carried out in
accordance with the Companies Act and the resolution by the Board of Directors,
the Company plans to distribute a year-end dividend of 11 yen per share
for the fiscal year ended on March 31, 2017. Added to the interim dividend
of 10 yen, which has been distributed already, this will bring the annual
dividend to 21 yen per share.
Outlook for the fiscal year ending Mar. 31, 2018
Regarding the economic outlook, despite an overall slow recovery trend,
uncertainty about the future is likely to remain high due to such factors
as concerns for the slowdown in the Chinese economy, stagnation in the
emerging economies, and the impact of a downturn in the global economy
accompanied by increasing geopolitical risk.
Under such conditions, the Rohto Group will adapt to the changes in the
business environment, aiming to expand business further and improve earnings
by creating new products and brands that respond appropriately to changing
customer needs. The Group is also taking on the challenge of various innovations
including alliances with a wide range of companies.
In the fiscal year ending March 31, 2018, we anticipate that net sales
will rise 2.5% year-on-year to 158.5 billion yen. In Asia, especially,
we expect a sales recovery in China in addition to strong sales in Vietnam.
We expect operating income to rise 1.0% to 15.6 billion yen, and ordinary
income to rise 0.2% to 16 billion yen. We expect profit attributable to
owners of parent to rise 1.9% to 10.2 billion yen.
These forecasts are based on an exchange rate of 110 yen to the U.S. dollar.
For the fiscal year ending on March 31, 2018, with our gratitude to all
the shareholders who support us on a regular basis, we plan to pay interim
dividends of 11 yen per share, year-end dividends of 11 yen per share bringing
the annual total to 22 yen per share.