Message from the Chairman and CEO
Net sales and operating profit rose on both a local currency and yen basis.
Profit attributable to owners of the parent was down, reflecting the temporary impact of the revision of a tax treaty with Germany in the previous fiscal year.
During the fiscal year ended March 31, 2018, sales increased in all geographic regions on both a local currency and yen basis. Operating profit also rose, as higher net sales pushed up gross profit and due to the positive impact of yen depreciation. However, profit attributable to owners of the parent was down year on year, reflecting the temporary impact of the revision of a tax treaty with Germany in the previous fiscal year. Net sales rose 12.8% year on year, and operating profit increased 14.3%, while profit attributable to owners of the parent fell 3.5%. At the exchange rates prevailing one year earlier, net sales would have been up 8.7% and operating profit up 9.5%.
In Japan, sales and operating profit rose due to higher sales in the hematology field1 and increased sales of reagents in the hemostasis and immunochemistry fields. Overseas, sales grew in all geographic areas thanks to higher sales of reagents, centered on the hematology field, due to expansion of the installed instrument base. As a result, the Group’s overseas sales ratio was 84.0%.
We expect to pay dividends for the year of ¥66 per share (interim dividend of ¥30 and year-end dividend of ¥36), up from our initial forecast of ¥60 per share (interim and year-end dividends of ¥30 each). This figure, which includes a dividend of ¥6 per share to commemorate our 50th anniversary of establishment and express our gratitude to shareholders, represents the 16th consecutive year of dividend increases and a consolidated dividend payout ratio of 35.1%. We aim to continue providing stable dividends going forward.
For the fiscal year ending March 31, 2019, we forecast net sales of ¥310.0 billion, operating profit of ¥62.0 billion and profit attributable to owners of the parent of ¥42.5 billion*. We also anticipate dividends for the year of ¥68 per share.
* Assumed exchange rates: Calculated on the basis of USD1.00 = JPY110.0, EUR1.00 = JPY130.0, and CNY1.00 = JPY16.5
1 Hematology field: The field of in vitro diagnostics that determines whether precise testing is necessary by analyzing the number, type and size of red, white and other blood cells.