Hoya Says Pandemic Significantly Impacted 1Q Eyeglass Lens, Contact Lens and IOL Sales

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TOKYO—Hoya Group (7741:JP) posted sales for the first quarter of the consolidated fiscal year ending June 30, 2020 of 109,327 million yen, a decrease of 22.4 percent compared to the same period in the prior fiscal year. Quarterly profit before tax amounted to 31,942 million yen with 25,629 million yen in profit, representing year-on-year decreases of 13.8 percent and 15.0 percent, respectively. Profit before tax ratio was 29.2 percent, representing a year-on-year increase of 2.9 points.

Disclosed figures and change ratios are for businesses with continuing operations. There were no discontinued businesses in the first quarter or in the same quarter of the previous year.

Sales of eyeglass lenses and contact lenses in health care-related products in Hoya’s Life Care segment decreased year on year, the company said. Eyeglass lens sales were impacted significantly, mainly due to government policies in Japan and around the world restricting economic activities to limit the spread of COVID-19.

Other factors included temporary closures among the company's eyeglass retailer customers and restrictions on non-essential travel outside the home. While policy differences remain among countries, deregulation has led to a gradual recovery in demand, and Hoya said its sales have likewise experienced a trend toward recovery. However, quarterly sales were lower year-on-year.

Hoya reported that contact lens sales in Japan were significantly impacted by temporary closures of its Eyecity specialty stores and shorter operating hours, all in response to the government’s declaration of emergency. Although sales declined year-on-year, performance began recovering after the cancellation of the state of emergency.

Sales of intraocular lens products for cataracts were significantly impacted by a decrease in cataract surgeries in Japan and overseas due to the spread of COVID-19. As surgeries resumed, Hoya said it saw a trend toward recovery in sales, although quarterly sales were lower year-on-year.

As a result, sales for the company’s Life Care segment decreased 34.0 percent year-on-year to 61,908 million yen. Segment profit decreased 40.3 percent to 10,319 million yen.