Taiwan-based Visco Vision, a specialist in contact lenses and a subsidiary of polarizer maker BenQ Materials, anticipates a surge in revenues for 2024, buoyed by strong support from major brand customers in China and Japan.
To satisfy the escalating market demand, the company is carrying out a significant expansion of its monthly production capacity for silicone hydrogel-colored contact lenses, aiming to add five million units by the first half of the year, thus boosting its total monthly capacity to 38 million units.
In 2023, Visco witnessed a 70% decline in revenue from the Chinese market, primarily attributed to a major customer struggling with inventory digestion amid China's economic downturn. However, with the resumption of orders from this customer in the first quarter of 2024, Visco is optimistic about a rebound in China-bound shipment.
Despite a low penetration in the Chinese contact lens market, the post-pandemic recovery has fueled rapid growth, particularly through online channels, where over 300 product brands, including a focus on colored contact lenses, vie for market share. Visco identifies silicone hydrogel-colored contact lenses as differentiated products highly valued by major brand clients in China and Japan, driving sales expansion in both markers.
While Japan traditionally held the second-largest market share for contact lenses globally, China has closed the gap since mid-2023. This trend bolsters Visco's bullish stance on the growth potential of silicone hydrogel-colored contact lenses in these key Asian markets.
In addition to its robust presence in Asia, Visco is strategically expanding its product portfolio and market reach. Plans include launching a new version of multifocal lenses in Europe and introducing toric lenses in Japan. Moreover, the company is exploring opportunities in the US market, leveraging stable shipments from existing online customers while pursuing new channel partnerships.
Spurred by surging demand, Visco is doubling down on its production capacity for colored contact lenses, aiming for a 30% shipment ratio in 2024, up from 20% in the second half of 2023. With an overall monthly production capacity set to reach 38 million units, the company anticipates improved capacity utilization rates and product unit prices, which could positively impact gross profit margins.
Visco's proactive strategies are reflected in its impressive financial performance, with consolidated revenue for February 2024 reaching a record high of NT$327 million (US$10.38 million), marking a 38.46% sequential increase and a remarkable 130.22% year-on-year surge. The combined revenue for the first two months of the year surged by 68.33% compared to the same period last year to a fresh high of NT$564 million for the period.
