Menicon Co., Ltd.

Business Details

The sole reportable segment engaged in the manufacture and sale of contact lenses (hard, soft, and disposable) and care products. Domestically, the segment builds a fixed customer base centered on the subscription-based membership system "Melsplan," while overseas it conducts sales to major retail chains in Europe and North America and sells orthokeratology lenses in Asia. The segment operates multiple production sites both domestically and overseas, and began commercial production at Menicon Malaysia Sdn. Bhd. in February 2026 as part of ongoing efforts to expand production capacity.

Recent Overview

1-Day Disposable Lenses expanded both domestically and overseas; Malaysia plant began commercial production

Menicon Malaysia Sdn. Bhd. began commercial production in February 2026, advancing capacity expansion efforts. Domestically, enhanced promotion of in-house manufactured silicone hydrogel material products led to an increase in Melsplan membership. In Europe and North America, orders from major retail chains expanded, resulting in a year-on-year increase of ¥2,869 million in 1-Day Disposable Contact Lens sales. Meanwhile, the orthokeratology-related market in China stagnated due to economic slowdown and the emergence of alternative products, leading to an impairment loss of ¥2,003 million on related intangible fixed assets and other items. Goodwill amortization increased from ¥485 million in the prior fiscal year to ¥1,089 million, due to additional consideration arising from the earn-out clause related to the acquisition of Itabashi Boeki Co., Ltd. Nevertheless, through appropriate control of selling, general and administrative expenses, segment profit increased by ¥499 million year on year to ¥17,468 million.

Key Products

Growth Drivers

• Increase in domestic Melsplan membership and improvement in the proportion of 1-Day Disposable Contact Lens members
• Expansion of disposable lens sales to major retail chains in Europe and North America
• Enhanced production capacity and supply capabilities for 1-Day Disposable Contact Lenses through Menicon Malaysia Sdn. Bhd. (commercial production began February 2026)
• Growing demand for orthokeratology lenses in Asian countries such as Japan, South Korea, and Singapore
• Development of a sales foundation for 1-Day Disposable Contact Lenses in the Chinese market (via one of China's largest online specialty distributors) and preparations for launching silicone hydrogel material products
• Medium- to long-term growth of the contact lens market driven by the increasing global myopic population

Risks

• Risk of continued stagnation in the orthokeratology-related market due to economic slowdown and declining consumer purchasing power in China
• Risk of losing market share in China due to the rise of alternative orthokeratology lens products
• Risk that it will take considerable time for the new Malaysia plant's mass production effects to contribute to earnings, along with increased costs associated with operational preparation
• Increased goodwill amortization expense (¥1,089 million for the current fiscal year) due to additional consideration arising from the earn-out clause related to the acquisition of Itabashi Boeki Co., Ltd.
• Risk of increased costs due to rising prices of raw materials, resources, and energy
• Foreign exchange risk (impact on the performance of overseas subsidiaries)
• Risk of further impairment of certain intangible fixed assets, goodwill, and other items, mainly related to China