Highlights

Overview of Results of Operations

During the current fiscal year, the Japanese economy showed signs of gradual recovery in economic activities, although the situation remained severe due to the influence of COVID-19 infections. Overseas, the situation remains unpredictable due to soaring crude oil prices and high raw material costs resulting from economic slowdown due to China's zero-COVID policy and Russia's invasion of Ukraine.

Under these circumstances, the Rohto Group has created the slogan of "Connect for Well-being," suggesting people around the world living energetically and happily each day, both physically and mentally, throughout the various stages of their lives. We are endeavoring to further increase corporate value.

Consequently, the consolidated net sales increased significantly to 199,646 million yen in the current fiscal year. Compared to the same period of the previous year, when sales fell sharply due to the influence of COVID-19 infections, progress in vaccination and the resumption of economic activity led to a recovery in consumer sentiment, which contributed to sales growth.

As a result of a significant sales growth and efforts to efficiently utilize selling, general and administrative expenses, the Company achieved a significant increase in all profit categories, with an operating income of 29,349 million yen, ordinary income of 29,084 million yen, and net income attributable to owners of the parent of 21,018 million yen.

Results by reportable segment are as follows.

Regarding dividends, following the resolution by the Board of Directors, the Company plans to distribute a year-end dividend of 21 yen per share for the fiscal year ended on March 31, 2022.
Added to the interim dividend of 15 yen, which has been distributed already, this will bring the annual dividend to 36 yen per share.

Outlook for the fiscal year ending Mar. 31, 2023

The future economic outlook remains uncertain due to the continuing spread of COVID-19 infections and economic slowdown by China's zero-COVID policy, affecting business activities and markets in some areas. In addition, following Russia's invasion of Ukraine, the supply of products to both countries has been suspended and the situation continues to be unpredictable due to soaring crude oil prices, etc.

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 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.

Based on this situation, for the next fiscal year, the Company projects net sales of 218.0 billion yen, operating income of 28.0 billion yen partly due to an increase in R&D expenses resulting from progress in developing regenerative medicine and medical-use ophthalmic drugs in Japan segment, ordinary income of 28.0 billion yen, and profit attributable to owners of parent to be 19.5 billion yen.

These forecasts are based on an exchange rate of 125 yen to the U.S. dollar.

Note: From the beginning of the current fiscal year, the Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29). Consequently, the accounting treatment of revenues differs from that of the previous fiscal year. The percentage changes from the previous fiscal year are not stated. The rate of change from the prior first half was not given in the narrative. If we were to apply the new revenue recognition standard to the prior first half, the rate of change was as follows: sales rose 15.6%, Cost of sales 1.4%, operating income 27.8.%, ordinary income 21.7%, and profit attributable to owners of parent 25.7% year-on year. Sales and profits at all levels increased to all-time highs.

Notes: The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), from the beginning of the current fiscal year, and the figures for the fiscal year ended March 2022 are after the application of the said accounting standard. The percentage changes from the same period of the previous fiscal year are not stated.