Cosmetics: Shiseido sees its net profit decline in the first half

Shiseido, a Japanese cosmetics group, revealed on Tuesday that it was maintaining its annual forecasts, after a first half marked by a recovery in sales in its main markets but weighed down by exceptional negative effects.


Shiseido’s net income decreased by 28%, to 11.75 billion yen (75.1 million euros) for the six months ended June 30, from 16.25 billion a year earlier. A decrease due in particular to the increase in operating expenses related to its refocusing on the high-end segment and the sale of its consumer cosmetics activities in Asia, initiated in 2021.


On Tuesday, the Japanese group said earnings per share fell to 29.4 yen from 40.64. Net sales decreased slightly from 493 billion yen to 494 billion yen.


Sales pick up in Japan and China


Its sales in the first half of the year notably increased in its two main markets, Japan (+8.2%) and China (+12.8%), where they had been particularly affected previously by health restrictions related to the pandemic.


On the other hand, revenue declined in the Americas, Asia-Pacific (excluding Japan and China) and EMEA (Europe, Middle East and Africa) regions and stagnated in travel retail (airport shops).


The company reported an interim dividend of 30 yen for the period under review, which will be paid to shareholders from early September. It plans to pay a final dividend of 30 yen for the year ending December 31, which appears to be less than the 75 yen paid for the previous fiscal year.


For the end of the fiscal year, Shiseido maintains its objectives with an attributable profit of 28 billion yen (178.3 million euros), which would be a fall of 18.1% over one year, a profit per share of 70.08 yen and net sales of 1,000 billion yen (€6.4 billion), down 6.3% compared to 2022.


Finally, despite figures below expectations for the first half of the year, the Group’s equities increased by more than 3% after the announcement of its results.


Read also >Shiseido announces the merger of its Japan and Pharmaceuticals subsidiaries

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Thanks to its extensive knowledge of these sectors, the Luxus + editorial team deciphers for its readers the main economic and technological stakes in fashion, watchmaking, jewelry, gastronomy, perfumes and cosmetics, hotels, and prestigious real estate.

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