Shiseido reports Q1 loss, net sales up 3.9 percent

First quarter net sales at Shiseido increased 3.9 percent to 249.5 billion Japanese yen on a reported basis and decreased 2.7 percent on a FX-neutral basis.

The company said in a release that net sales rose 3.2 percent on a like-for-like basis, excluding the impacts of foreign exchange translation and business transfers, as well as the acquisition of Dr. Dennis Gross Skincare.

The company expects to achieve a core operating profit of 55 billion Japanese yen in the fiscal year 2024.

Shiseido posts loss

Core operating profit was 11.3 billion Japanese yen, above the company’s target for the quarter but down 1.2 billion Japanese yen compared to the previous year, adversely affected by weak sales growth.

Profit attributable to owners of the parent company decreased by 12 billion Japanese yen, resulting in a loss of 3.3 billion Japanese yen, while the EBITDA margin was 9.8 percent.

The company’s travel retail business net sales were 29.8 billion Japanese yen, down 22.7 percent on a reported basis, down 30.4 percent on a FX-neutral basis, or down 30.5 percent on a like-for-like basis. Core operating profit decreased by 4.5 billion Japanese yen to 3 Japanese yen.

Review of Shiseido’s performance across markets

Japan ended the quarter with net sales of 73.6 billion Japanese yen, up 19.3 percent on a reported basis or up 19.6 percent on a like-for-like basis excluding the business transfer impacts. Core operating profit was 6.7 billion Japanese yen with an improvement of 8.3 billion Japanese yen from the prior year.

China net sales were 55.5 billion Japanese yen, up 4.2 percent on a reported basis, and down 3.2 percent on a FX-neutral basis. On a like-for-like basis, the decline was 2.6 percent. Segment’s core operating profit was 0.1 billion Japanese yen with an improvement of 2.3 billion Japanese yen from the prior year.

Asia Pacific net sales were 17.1 billion Japanese yen, up 11.2 percent on a reported basis, up 2.4 percent on a FX-neutral basis and up 5.2 percent on a like-for-like basis. Core operating profit increased by 0.6 billion Japanese yen to 1 billion Japanese yen.

Net sales in the Americas were 31.8 billion Japanese yen, up 22.4 percent on a reported basis, up 8.9 percent on a FX-neutral basis, or up 9.4 percent on a like-for-like basis. Core operating profit increased by 2.1 billion Japanese yen to 3.6 billion Japanese yen.

EMEA net sales were 34.8 billion Japanese yen, up 25.2 percent on a reported basis, up 10.4 percent on a FX-neutral basis, or up 16.7 percent on a like-for-like basis, while operating profit increased by 1.6 billion Japanese yen to 4.2 billion Japanese yen.