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
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.