Net sales and net income for the current term reached record highs.
During the current fiscal year, the Japanese economy showed a moderate
recovery owing to improvements in the employment and income environment,
as well as an increase in the number of foreign visitors to Japan against
the backdrop of the weak yen. Personal consumption also showed signs of
a modest pick-up, despite persisting sluggishness in some areas due to
consumers’ increased frugality in the face of rising prices. On the other
hand, the outlook of the Japanese economy is still uncertain on account
of future trends of US policy, continued concerns about a possible slowdown
in overseas economies, persistent instability in financial markets, such
as with exchange rate and stock price fluctuations, and rising domestic
prices due to soaring resource and materials prices against the backdrop
of the protracted conflict in Ukraine, and other factors.
In these circumstances, the Rohto Group is endeavoring under the slogan
"Connect for Well-being" to enable people all over the world
to feel energized both mentally and physically, and spend every day filled
with laughter and happiness throughout the various stages of their lives.
With the aim of further increasing corporate value, we are working to realize
the Rohto Group Comprehensive Management Vision 2030.
Consequently, net sales increased significantly to 308,625 million yen
(up 14.0% year-on-year). In Japan, sales increased, reflecting product
proposals that meet customer needs as well as rising inbound demand. Overseas,
sales also increased due to product proposals that meet customer needs,
depreciation of the yen and addition of Singaporean Chinese herbal medicine
manufacturing and sales company Eu Yan Sang International Ltd. and Austrian
pharmaceutical and medical device manufacturing and sales company Mono
chem-pharm Produkte GmbH, whose shares were newly acquired by the Company,
to the scope of consolidation.
As for profits, as a result of a rising cost of sales ratio as well as
increased selling, general and administrative expenses due to a planned
increase in research and development expenses, operating income was 38,939
million yen (down 2.8% year-on-year), ordinary income was 40,430 million
yen (down 4.7% year-on-year), and profit attributable to owners of parent
was 31,006 million yen (up 0.2% year-onyear).
Outlook for the fiscal year ending Mar. 31, 2026
With regard to the economic outlook, the moderate recovery trend of the
Japanese economy is expected to continue against the backdrop of wage hikes,
expansion of capital investment, and rising inbound demand despite concerns
about households’ growing frugality due to persisting price increases.
On the other hand, the outlook for overseas economies remains uncertain,
as the environment for personal consumption is expected to remain challenging
due to factors such as the growing uncertainty of trade policies.
In these circumstances, the Rohto Group will adapt to the changes in the
business environment, aiming to expand business further and improve earnings,
by creating new products that respond appropriately to changing customer
needs. The Group is also endeavoring to achieve innovations, including
through alliances with a wide range of companies.
In view of this situation, for the fiscal year ending March 31, 2026, the
Company projects net sales of 334.5 billion yen, operating income of 39.0
billion yen, ordinary income of 40.5 billion yen, and profit attributable
to owners of parent of 31.1 billion yen.
These forecasts are based on an exchange rate of 142 yen to the U.S. dollar
and 19 yen to the Chinese yuan.