Shiseido profits leap 135 per cent
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Shiseido profits for its latest nine months more than doubled over the same period last year.
‘New income’ leaped 135 per cent to a record ￥37.2 billion (US$345.8 million) for the nine months to September 30. The cosmetics company attributes this to several factors including an increase in operating income, the sale of intellectual property rights associated with the Jean Paul Gaultier brand, and gain from the sale of its Kamakura factory site.
Shiseido’s operating income increased 17.1 per cent year on year to ￥38.7 billion. As well as “substantial” grown in its home market, it also had higher sales in Chinai and in travel retail.
However, sales fell in the Americas, Asia-Pacific, Europe, the Middle East and Africa.
The company still expects its full-year net profits to grow by 1.8 per cent to Y30 billion with a significant year-on-year decrease in operating income in the fourth quarter.
Questions & Answers
Q.What were the primary reasons for Shiseido's significant increase in 'new income' during the nine-month period?
What were the primary reasons for Shiseido's significant increase in 'new income' during the nine-month period?
The substantial increase in 'new income' was attributed to higher operating income, the sale of intellectual property rights for the Jean Paul Gaultier brand, and profit from the sale of its Kamakura factory site.
Q.Despite the strong profit growth, in which regions did Shiseido experience a decline in sales?
Despite the strong profit growth, in which regions did Shiseido experience a decline in sales?
Sales for Shiseido fell in several key regions. These included the Americas, the broader Asia-Pacific area, Europe, the Middle East, and Africa during the reported nine-month period.
Q.Does the company anticipate this level of profit growth to continue for the full financial year?
Does the company anticipate this level of profit growth to continue for the full financial year?
No, Shiseido expects its full-year net profits to grow by a more modest 1.8 per cent to Y30 billion. This includes an anticipated significant year-on-year decrease in operating income during the fourth quarter.
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