Net sales grew, thanks to higher sales in Japan and overseas, centered on the hematology field*.
Profit attributable to owners of the parent was down, owing to such factors as a foreign exchange loss and an increase in the tax rate.
In the first six months of the fiscal year ending March 31, 2020, net sales increased year on year on both yen and local currency basis, benefiting from higher sales centered on the hematology field in Japan and overseas, despite the impact of yen appreciation. Although gross profit roses as a result of the sales increase, operating profit was down due to the impact of yen appreciation and higher R&D expenses. Profit attributable to owners of the parent also declined, owing to the impact of an exchange rate loss and a higher tax rate. Net sales increased 5.0% year on year, while operating profit fell 2.5% and profit attributable to owners of the parent was down 9.7%. At the exchange rates prevailing one year earlier, net sales would have been up 9.6% and operating profit up 4.7%.
In Japan, sales rose thanks to higher sales of instruments in the hematology and hemostasis fields, as well as to favorable results of system introduction proposals. Overseas, sales grew thanks to an increase in reagent sales, centered on the hematology, urinalysis and immunochemistry fields. As a result, the Group’s overseas sales ratio was 84.1%.
As yen appreciation is higher than initially forecast, we have revised the exchange rate assumptions used in our forecast for the full fiscal year ending March 31, 2020. As a result, we now expect net sales to increase 5.6% year on year, operating profit to decrease 2.1%, and profit attributable to owners of the parent to decline 6.6%.
Our dividend forecast for the year remains as initially forecast, at ¥72 (interim and year-end dividends of ¥36 each).
* 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.