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Investing.com -- Rohto Pharmaceutical reported its Q1 results showing significant growth in Asia, largely driven by the consolidation of Eu Yan Sang International (EYS).
The company saw a 5.8% increase in Japan Eye Care sales and achieved double-digit growth in Southeast Asian markets, particularly Vietnam (low teens percentage growth) and Indonesia (mid-30s percentage growth).
Asia sales increased by ¥11.6 billion, with 88% of this growth coming from the Medicine/Food segment (¥9.5 billion) and Medical segment (¥0.72 billion). The Skincare segment also contributed to growth.
The EYS acquisition, which was consolidated starting in Q3 of the previous fiscal year, appears to be a major growth driver, contributing an estimated ¥9.0 billion to Q1 sales. EYS has an estimated annual sales scale of ¥33 billion, representing approximately one-third of Rohto’s ¥100 billion Asia segment.
In Japan, Lip cream products showed strong performance with 31% growth, while Rohto V5 Supplement grew by 17%. However, the company’s major Hada Labo brand slowed to just 1% growth compared to 5.5% in Q4, and Melano CC declined by 10%. Overall Japan Skincare segment growth was modest at 0.7%.
The company has implemented price increases on 27 items in August, including two Hada Labo skincare products and several Panciron items. However, analysts note that additional contribution from these price hikes may be challenging due to competition from low-priced alternatives and private brands in the same retail channels.
By region, the Q1 sales increase breakdown shows Japan contributing ¥0.24 billion, Asia ¥11.6 billion, Americas ¥30 million, and Europe ¥1.68 billion.
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