Highlights

During the current fiscal year, the Japanese economy was on a recovery track. As normalization of economic activities progressed further by the lifting of behavioral restrictions due to COVID-19, the number of travelers from abroad increased.
Although real wages continue to decline because wage increases are not keeping pace with price increases, personal consumption gradually recovered as behavioral restrictions eased. On the other hand, the outlook of the Japanese economy remained uncertain owing to depreciation of the yen, concerns about a possible slowdown of overseas economies, and ongoing sharp rises in the prices of commodities and semi-processed raw materials against the backdrop of the protracted conflict in Ukraine.

In these circumstances, under the slogan "Connect for Well-being," the Rohto Group is endeavoring 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 life. 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 270,840 million yen (up 13.5% year-on-year). In Japan, sales increased, reflecting product proposals that meet customer needs as well as a recovery in inbound demand. Overseas, sales also increased thanks to product proposals that meet customer needs and depreciation of the yen.

As for profits, in addition to a significant increase in net sales, efforts to improve the cost of sales ratio and efficiently utilize selling, general and administrative expenses resulted in significant increases in all profit categories: operating profit of 40,048 million yen (up 17.9% year-on-year), ordinary profit of 42,434 million yen (up 19.3% year-on-year), and profit attributable to owners of parent of 30,936 million yen (up 17.3% year-on-year).

The Japanese economy is expected to grow steadily, driven by domestic demand, such as personal consumption and capital investment.
However, the economic outlook remains uncertain in view of ongoing depreciation of the yen and because sharp rises in raw material and fuel prices as well as increases in commodity prices are expected to persist.

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, 2025, the Company projects net sales of 300.0 billion yen, operating profit of 43.0 billion yen, ordinary profit of 44.0 billion yen, and profit attributable to owners of parent of 32.0 billion yen.

These forecasts are based on an exchange rate of 148 yen to the U.S. dollar and 20 yen to the Chinese yuan.
This forecast does not include the results of Eu Yan Sang International Ltd. with which the Company entered into a share transfer agreement on April 4, 2024.