Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.
Consolidated Financial Results
for the Year Ended March 31, 2021
[Japanese GAAP]
May 13, 2021 | ||||||||||||
Company name: Menicon Co., Ltd. | ||||||||||||
Stock exchange listing: Tokyo,Nagoya | ||||||||||||
Code number: 7780 | ||||||||||||
URL: https://www.menicon.com | ||||||||||||
Representative: Hidenari Tanaka | CEO | |||||||||||
Contact: Motonari Watanabe | Senior Executive Officer, Corporate Management | |||||||||||
Phone: +81-52-935-1515 | ||||||||||||
Scheduled date of Annual General Meeting of Shareholders: June 24, 2021 | ||||||||||||
Scheduled date of commencing dividend payments: June 25, 2021 | ||||||||||||
Scheduled date of filing annual securities report: June 25, 2021 | ||||||||||||
Availability of supplementary briefing material on annual financial results: Yes | ||||||||||||
Schedule of annual financial results briefing session: Yes | ||||||||||||
(Amounts of less than one million yen are rounded down) | ||||||||||||
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 01, 2020 to March 31, 2021) | ||||||||||||
(1) Consolidated Operating Results | (% indicates changes from the previous corresponding period.) | |||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||||
owners of parent | ||||||||||||
Fiscal year ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||||
March 31, 2021 | 86,209 | 2.0 | 8,106 | 15.3 | 8,348 | 27.4 | 5,952 | 46.6 | ||||
March 31, 2020 | 84,519 | 4.5 | 7,033 | 26.2 | 6,554 | 16.1 | 4,060 | 13.5 |
(Note) Comprehensive income: | Fiscal year ended March 31, 2021: |
Fiscal year ended March 31, 2020: |
¥ | 6,823 million | [ | 79.4%] |
¥ | 3,802 million | [ | 16.7%] |
Basic earnings per | Diluted earnings per | Rate of return on | Ordinary profit to | Operating profit to | |
share | share | equity | total assets ratio | net sales ratio | |
Fiscal year ended | Yen | Yen | % | % | % |
March 31, 2021 | 157.67 | 154.46 | 10.6 | 7.8 | 9.4 |
March 31, 2020 | 112.25 | 106.95 | 8.5 | 7.9 | 8.3 |
(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended March 31, 2021: Fiscal year ended March 31, 2020:
- (39) million
- (300) million
(2) Consolidated Financial Position
Total assets | Net assets | Capital adequacy ratio | Net assets per share | ||
As of | Million yen | Million yen | % | Yen | |
March 31, 2021 | 126,731 | 60,985 | 46.7 | 1,565.10 | |
March 31, 2020 | 87,286 | 53,520 | 61.2 | 1,414.80 | |
(Reference) Equity: As of | March 31, 2021: | ¥ | 59,144 million | ||
As of | March 31, 2020: | ¥ | 53,378 million | ||
(3) Consolidated Cash Flows | |||||
Cash flows from | Cash flows from | Cash flows from | Cash and cash | ||
equivalents at the end | |||||
operating activities | investing activities | financing activities | |||
of period | |||||
Fiscal year ended | Million yen | Million yen | Million yen | Million yen | |
March 31, 2021 | 10,628 | (15,629) | 28,913 | 41,120 | |
March 31, 2020 | 8,712 | (7,656) | (3,438) | 16,791 | |
2. Dividends
Annual dividends | Payout | Dividends | |||||||||
Total | to net | ||||||||||
ratio | |||||||||||
1st | 2nd | 3rd | Year-end | Total | dividends | assets | |||||
(consolidated) | |||||||||||
quarter-end | quarter-end | quarter-end | (consolidated) | ||||||||
Fiscal year ended | Yen | Yen | Yen | Yen | Yen | Million yen | % | % | |||
March 31, 2020 | - | 0.00 | - | 28.00 | 28.00 | 1,056 | 24.9 | 2.1 | |||
March 31, 2021 | - | 0.00 | - | 35.00 | 35.00 | 1,322 | 22.2 | 2.3 | |||
Fiscal year ending | |||||||||||
March 31, 2022 | - | 0.00 | - | 35.00 | 35.00 | 23.2 | |||||
(Forecast) | |||||||||||
(Note) Breakdown of the year-end dividend for the fiscal year ended March 31, 2021 : | |||||||||||
Ordinary dividend | 30 | yen | |||||||||
Commemorative dividend | 5 | yen | |||||||||
(the 70th anniversary of the Company's founding) | |||||||||||
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 01, 2021 to March 31, 2022)
(% indicates changes from the previous corresponding period.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Basic earnings per | ||||||
owners of parent | share | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||
Full year | 99,200 | 15.1 | 9,000 | 11.0 | 8,800 | 5.4 | 5,700 | (4.2) | 150.83 |
* Notes:
- Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): No
- Changes in accounting policies, changes in accounting estimates and retrospective restatement
- Changes in accounting policies due to the revision of accounting standards: No
- Changes in accounting policies other than 1) above: No
- Changes in accounting estimates: No
- Retrospective restatement: No
- Total number of issued shares (common shares)
- Total number of issued shares at the end of the period (including treasury shares):
March 31, 2021: | 38,077,444 | shares |
March 31, 2020: | 38,015,944 | shares |
2) Total number of treasury shares at the end of the period: | ||
March 31, 2021: | 287,876 | shares |
March 31, 2020: | 287,836 | shares |
3) Average number of shares during the period: | ||
Fiscal Year ended March 31, 2021: | 37,750,801 | shares |
Fiscal Year ended March 31, 2020: | 36,178,168 | shares |
(Reference) Summary of Non-consolidated Financial Results | |||||||||||||
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 01, 2020 to March 31, 2021) | |||||||||||||
(1) Non-consolidated Operating Results | (% indicates changes from the previous corresponding period.) | ||||||||||||
Net sales | Operating profit | Ordinary profit | Net income | ||||||||||
Fiscal year ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||||
March 31, 2021 | 59,720 | 1.2 | 5,335 | (1.0) | 5,274 | (0.3) | 3,081 | (6.5) | |||||
March 31, 2020 | 58,999 | 5.7 | 5,386 | 18.9 | 5,292 | 16.2 | 3,294 | 2.4 | |||||
Basic earnings per share | Diluted earnings per share | ||||||||||||
Fiscal year ended | Yen | Yen | |||||||||||
March 31, 2021 | 81.61 | 80.00 | |||||||||||
March 31, 2020 | 91.07 | 86.79 | |||||||||||
(2) Non-consolidated Financial Position | |||||||||||||
Total assets | Net assets | Capital adequacy ratio | Net assets per share | ||||||||||
As of | Million yen | Million yen | % | Yen | |||||||||
March 31, 2021 | 112,630 | 58,033 | 49.9 | 1,488.31 | |||||||||
March 31, 2020 | 80,882 | 54,224 | 66.9 | 1,434.85 | |||||||||
(Reference) Equity: As of | March 31, 2021: | ¥ | 56,242 million | ||||||||||
As of | March 31, 2020: | ¥ | 54,135 million |
- This summary of financial results is exempt from audit procedures.
- Explanation regarding appropriate use of business results forecasts and other special instructions
- Forecasts regarding future performance presented in this material include the outlook for the future, assumptions on which the plan is based, and projections as of the date of announcement of this material. Actual results may differ from the forecasts presented in this material due to various factors.
- For the forecast of consolidated business results assumptions and our response, please refer to "1. Overview of Business Results (5) Outlook" on Page 5 of the appendix.
Table of contents of appendix | ||
1. Overview of Business Results ........................................................................................................... | 2 | |
(1) | Overview of Business Results for the Fiscal Year Under Review............................................................... | 2 |
(2) | Overview of Financial Position for the Fiscal Year Under Review............................................................. | 4 |
(3) | Overview of Cash Flows for the Fiscal Year Under Review ....................................................................... | 4 |
(4) Basic Policy on Profit Distribution and Dividends for the Fiscal Year Under Review and for the Next Fiscal | ||
Year ................................................................................................................................................................... | 5 | |
(5) | Outlook ........................................................................................................................................................ | 5 |
2. Basic Approach for Selection of Accounting Standards .................................................................... | 5 | |
3. Consolidated Financial Statements .................................................................................................... | 6 | |
(1) | Consolidated Balance Sheets....................................................................................................................... | 6 |
(2) | Consolidated Statements of Income and Comprehensive Income............................................................... | 8 |
(3) | Consolidated Statements of Changes in Net Assets................................................................................... | 10 |
(4) | Consolidated Statements of Cash Flows.................................................................................................... | 12 |
(5) | Notes to Consolidated Financial Statements ............................................................................................. | 13 |
(Notes on going concern assumption).................................................................................................................. | 13 | |
(Additional information)...................................................................................................................................... | 13 | |
(Segment information) ......................................................................................................................................... | 13 | |
(Per share information) ........................................................................................................................................ | 18 | |
(Significant subsequent events) ........................................................................................................................... | 18 |
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1. Overview of Business Results
(1) Overview of Business Results for the Fiscal Year Under Review
(Business results for the fiscal year under review)
Regarding the world economy during the fiscal year ended March 31, 2021, situation remained increasingly uncertain, mainly due to restricted economic activities as a result of the COVID-19 pandemic. As for the domestic economy, uncertainty about the future continued as economic activities slowed in response to the state of emergency declared by the Japanese government and requests issued by local governments to stop the spread of COVID-19 infections, which in turn exerted a major impact on personal consumption and employment.
Under these circumstances, in the contact lens market, demand for disposable contact lenses has heightened overseas, especially for daily disposable contact lenses. This suggests that demand is on a recovery trend although the impact of COVID-19 has cooled consumption to some extent. In the domestic market, demand continued to rise for circle lenses, which are intended to make your eyes appear larger, and so did demand for multifocal contact lenses.
Performances in each business units are as follows.
[Domestic Contact Lens Business]
Due to the impact of COVID-19, sales promotion activities were restricted at our partner retail shops and the group retail shops because of limited interactions with customers by reduced the number of business days and shortened business hours, and increased awareness of the need to avoid in-person contact. Under such circumstances, we focused on expanding the users of daily disposable contact lenses, for which demand in the market is increasing, multifocal contact lenses targeting the generation with presbyopia, and circle lenses, which help users give the impression of having larger eyes even while wearing face masks during the COVID-19 pandemic.
Regarding the product strategy, we have newly released a 30-piece pack for the "1DAY FRUTTIE" daily disposable circle lenses and are making the product more widely available through retail facilities that offer contact lenses based on prescriptions from ophthalmologists. Meanwhile, we also released a 10-piece pack of the same product on a major online shopping site in Japan. As part of our efforts to raise safety awareness, we have launched a trial program called "Let's Go Color Contact Lens Health Checkup" for those who purchased this product. The aim is to help users confirm the right strength of lenses for their eyes. As we enter a new market and expand sales of circle lenses, we will raise consumer safety awareness based on the concept of our Safety Philosophy Charter.
Our own retail shops and the Group retail shops are working to create an environment that makes customers feel safe to visit. In addition to posing the video about our infection prevention measures on the website of Miru, we have also started to take appointments from customers planning visits and to offer a service in which customers can receive their purchases from dedicated delivery lockers for the purpose of reducing congestion and the time spent in the store. We started providing services that enable smooth communication with customers even in the new era, such as the "AR Shop," which offers a pseudo shopping experience closer to the reality, the "Club Menicon" total service site, and the "MENICOiN" reward point program.
As promotional measures, we worked on advertising activities, such as broadcasting TV commercials primarily on "SMART TOUCH" and "Miru," and on sales promotion activities such as running the 1DAY admission campaign.
As a result of these initiatives, MELS Plan memberships reached 1.34 million as of March 31, 2021. We will strive to further expand the business in the future.
[Overseas Contact Lens Business]
Our overseas activities were conducted under strict restrictions on outings and other COVID-19-related measures. Our representatives could not visit customers for some time and our production sites had to take infection prevention measures. Under such difficult circumstances, we successfully expanded business mainly by strengthening our sales network through M&A and the acquisition of new outlets and by improving our logistics functions. This resulted in the overall growth of the overseas contact lens business, achieving a 27.9% increase in net sales year on year.
In Europe, our net sales increased 23.6% year on year, demonstrating expanded performance. This is attributable to increased sales in the Italian market through the sales network acquired by making SOLEKO S.p.A. our wholly-owned subsidiary in October 2019. In addition, in the burgeoning disposable contact lens market, we positioned "Miru 1day UpSide" and "Miru 1day Menicon Flat Pack" as strategic products and have started to deal with new leading mass-volume retailers. To meet the growing sales of disposable contact lenses in terms of distribution, our logistics center functions were relocated and expanded in Germany, leading to an enhanced supply chain.
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