Helped by the impact of yen depreciation, the Company achieved double-digit sales growth, centered on overseas markets.
Income rose substantially, bolstered by the effects of higher sales and an improved cost of sales ratio.
During the first six months of the fiscal year ending March 31, 2014, due in part to the impact of yen depreciation Sysmex posted a double-digit increase in sales, centered on overseas markets. Furthermore, income benefited from the effects of higher sales and an improved cost of sales ratio. Net sales rose 25.2% year on year, with operating income up 29.5%, ordinary income up 38.8% and net income up 34.5%. At the exchange rates prevailing one year earlier, net sales would have been up 5.7% and operating income down 1.2%.
In Japan, we recorded a slight decrease in domestic sales, but intra-area transfers to Group affiliates (overseas) were favorable, resulting in an increase in sales for the segment. Overseas, sales were up in all geographic regions, thanks to higher sales of instruments and reagents and due in part to the impact of yen depreciation. As a result, the Sysmex Group’s overseas sales ratio amounted to 77.7%.
As the yen is depreciating more than we had anticipated against other currencies, net sales now appears likely to exceed the figures we had previously forecast, so we have revised our net sales forecast for the year ending March 31, 2014, to ¥180.0 billion, corresponding to a 23.6% year-on-year increase. Although this increase in sales will have a positive impact on profit, we do not expect operating income to differ from our initial forecasts announced in May 2013, as costs have increased in line with the acquisition of two German companies. Our forecasts for ordinary income and net income also remain unchanged.
We expect to pay an interim dividend of ¥21 per share, with total annual dividends of ¥42 per share, and we intend to maintain stable dividend levels going forward.
I ask for the continued support of our shareholders.
Chairman and CEO