Management Policies

Message from the Chairman and CEO

Net sales and profit were down year on year, due to the impacts of the COVID-19 pandemic and yen appreciation. 

代表取締役会長兼社長 家次 恒

August 2020

家次 恒

Net sales were down, due to effect of COVID-19 on reagent sales, and to the impact of yen appreciation.

 

Profit attributable to owners of the parent declined due to the fall in operating profit, despite an exchange rate gain. 

In the first three months of the fiscal year ending March 31, 2021, net sales fell, as sales of reagents decreased due to COVID-19-inflicted declines in the number of people undergoing testing in all regions, as well as to the impact of yen appreciation. Operating profit was down as lower sales forced down gross profit, and the cost of sales ratio deteriorated due to falling reagent sales. Profit attributable to owners of the parent was down due to lower operating profit, despite the impact of an exchange rate gain. Net sales decreased 11.7% year on year, operating profit fell 38.3%, and profit attributable to owners of the parent declined 33.0%. At the exchange rates prevailing one year earlier, net sales would have been down 8.3% and operating profit down 40.6%.

Reagent sales fell in the fields of hematology1, urinalysis and immunochemistry, as lockdowns led to decreases in the number of people undergoing testing. In the hemostasis field, meanwhile, sales were up due to increases in direct sales regions and as the result of higher sales of D-Dimer reagents, which are used as an indicator for monitoring the increasing severity of COVID-19. In the life science field, as well, sales were up due to higher sales of cancer gene panels and PCR test kits for COVID-19.

 Our forecast for the fiscal year ending March 31, 2021 is undetermined, as increasing COVID-19 infections and their prolonged impact makes rationally calculating a financial forecast problematic at present. We are closely investigating the impact on market demand, and we will promptly disclose our financial forecast once calculation becomes possible. We forecast an annual dividend of ¥72 per share aiming to maintain a proper balance between aggressive investment, which is designed to sustain steady high growth, and returns to our shareholders intending to provide a stable dividend on a continuous basis.

 

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.