Menicon (7780): FY2025 Results Summary — 1-DAY Lens Growth Lifts Profit Despite Ortho-K Impairment Charge

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Menicon Co., Ltd. reported consolidated net sales of JPY125,605 million (+3.4% year on year) and operating profit of JPY10,236 million (+2.2%) for FY2025 (the fiscal year ended March 31, 2026), driven by growth in the Vision Care Business, particularly expanded 1-DAY lens sales in Japan and overseas. Ordinary profit rose 15.2% to JPY11,021 million, aided by foreign exchange gains. Profit attributable to owners of parent increased 5.7% to JPY5,916 million after the company recorded JPY2.1 billion in extraordinary losses from impairment of Ortho-K-related intangible assets and goodwill associated with specialty lens sales companies, as well as restructuring costs in Europe. For FY2026, Menicon forecasts net sales of JPY133,000 million (+5.9%) and profit attributable to owners of parent of JPY6,500 million (+9.9%).

Consolidated Results (Full-Year Actual)

Net sales and profit increased at every stage, led by growth in the Vision Care Business. Gross profit rose 3.9% to JPY67,599 million, while SGA expenses increased 4.3% to JPY57,363 million due to continued investment for growth, including new plants and human capital investment, as well as additional recording of amortization of goodwill. EBITDA increased 14.1% to JPY21,054 million, and the EBITDA margin rose 1.6pt to 16.8%. On a constant currency basis, operating profit rose 5.4% and ordinary profit rose 17.7%.

Item (JPY mn)	FY2024	FY2025	YoY	YoY (Constant Currency Basis)
Net sales	121,491	125,605	+3.4%	+2.6%
Cost of sales	56,456	58,006	+2.7%	+1.8%
Gross profit	65,034	67,599	+3.9%	+3.3%
SGA	55,022	57,363	+4.3%	+2.9%
Operating profit	10,012	10,236	+2.2%	+5.4%
EBITDA	18,457	21,054	+14.1%	+15.8%
Ordinary profit	9,567	11,021	+15.2%	+17.7%
Profit attributable to owners of parent	5,597	5,916	+5.7%	+10.9%

Segment Results

The Vision Care Business grew 3.7% to JPY116,523 million in net sales, driven by an increase in MELS Plan 1-DAY lens members on higher supply volume and sales expansion in Japan and overseas. Within Vision Care, 1-DAY lens net sales rose 9.3% to JPY33,809 million, with overseas 1-DAY lens sales up 36.9% on expanded promotional activities backed by increased supply volume. Orthokeratology-related net sales declined 2.4% to JPY14,539 million, as global sales expansion was offset by economic stagnation and an intensifying competitive environment in China. Other Contact lenses and Lens care products net sales rose 2.5% to JPY68,174 million on increased 1-MONTH lens sales in Europe and lens care product sales in Japan and North America. The Healthcare and Life Care Business net sales were roughly flat at JPY9,081 million (-0.9%), as growth in the composting-related Life Care business was offset by a downsizing of the Food business in China.

Segment / Product	Metric	FY2024 (JPY mn)	FY2025 (JPY mn)
Vision Care	Net sales	112,327	116,523
1-DAY lens	Net sales	30,940	33,809
Orthokeratology-related	Net sales	14,889	14,539
Other Contact lenses and Lens care products	Net sales	66,496	68,174
Healthcare and Life Care	Net sales	9,163	9,081

FY2026 Forecast

For FY2026, Menicon forecasts net sales of JPY133,000 million (+5.9%) and operating profit of JPY11,000 million (+7.5%), driven by full-scale expansion of 1-DAY lens sales in Japan and overseas, despite the impact of the situation in the Middle East, a temporarily increased fixed cost burden at the Malaysia Plant, and higher costs for certain raw materials. Ordinary profit is forecast to decline 4.7% to JPY10,500 million, while profit attributable to owners of parent is forecast to rise 9.9% to JPY6,500 million. By product line, overseas 1-DAY lens net sales are forecast to rise 46.5% to JPY5,500 million, and Vision Care net sales overall are forecast to rise 6.4% to JPY124,000 million.

Item (JPY mn)	FY2025	FY2026 Forecast	YoY
Net sales	125,605	133,000	+5.9%
Cost of sales	58,006	62,000	+6.9%
Gross profit	67,599	71,000	+5.0%
SGA	57,363	60,000	+4.6%
Operating profit	10,236	11,000	+7.5%
EBITDA	21,054	22,600	+7.3%
Ordinary profit	11,021	10,500	-4.7%
Profit attributable to owners of parent	5,916	6,500	+9.9%

Shareholder Returns

In accordance with its dividend policy of a payout ratio of around 30% and stable dividends, Menicon forecasts a dividend per share of JPY28 for FY2026, unchanged from FY2025. The FY2025 total dividend amount was JPY2.0 billion, with a dividend payout ratio of 35%. For FY2026, the total dividend amount is forecast at JPY2.0 billion, with a dividend payout ratio of 32%.

Item	FY2024	FY2025	FY2026 Forecast
Dividend per share (JPY)	28.0	28.0	28.0
Total dividend amount (JPY bn)	2.1	2.0	2.0
Dividend payout ratio	38%	35%	32%

Medium-Term Plan / Topics

Under the Medium-term Management Plan “Milestone 2027,” Menicon targets net sales of over JPY140.0 billion and an operating profit margin of 12% by FY2027, up from an operating profit margin of 8.1% in FY2025 (8.3% forecast for FY2026). EBITDA margin rose from 14.5% in FY2023 to 16.8% in FY2025, and is forecast to reach 17.0% in FY2026. The company describes FY2023-FY2026 as an “investment phase” transitioning to an “investment return phase” from FY2027. As part of its 1-DAY lens growth strategy, Menicon started commercial production at its Malaysia Plant, a new 1-DAY lens production site, in February 2026, in addition to existing production at the Kakamigahara Plant and Menicon Singapore Pte. Ltd. Under its growth strategy targets from FY2023 to FY2027, the company targets 1-DAY lens net sales growth from JPY28.4 billion to JPY46.0 billion, including overseas 1-DAY lens sales growth from JPY2.9 billion to JPY11.5 billion, and Vision Care net sales growth from JPY106.8 billion to JPY130.0 billion.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.