Although Shiseido doubled its profit in the first quarter of 2023, its sales did not grow much. These mixed results have prompted the company to remain cautious in its annual outlook and to continue to anticipate a decline in its sales and net income.
Despite a surge in its first-quarter profit, Shiseido is keeping a cool head…
Profit doubled
The Japanese cosmetics giant has certainly doubled its profit to 8.7 billion yen (59 million euros) in the first quarter. Its operating profit jumped by +140% to 10.5 billion yen (71.2 million euros). Shiseido explains this performance by “agile cost management” and “the recovery of its sales.”
But for all that, these quarterly sales have changed moderately, or 2.6% year-on-year, to 240 billion yen (1.6 billion euros). Excluding the effects of exchange rates and business transfers, they were up 7.7%.
Contrast in Asia
Geographically, Shiseido’s sales grew well in the Americas, EMEA, and Asia-Pacific regions.
However, Asia’s performance was mixed in its two main destinations. In Japan, its largest market in the world, growth was sustained, thanks to the recovery in the archipelago and the launch of new products.
On the other hand, Shiseido did not fare well in China, its second-largest market, weighed down by the comeback of covid in January in the Middle Kingdom and “inventory adjustments” in travel retail stores.
Continued uncertainty
Rather than dwelling on this relatively good start to the year, Shiseido points to the continuing “uncertainty” in the world, linked to the war in Ukraine and inflation.
This context encourages the Japanese group of Beauty to maintain its annual forecast in 2023. It still anticipates two decreases by reference to 2022: its sales (- 6.3% to 6.8 billion euros) and its net profit (- 18.1% to 190 million euros).
Read also > Shiseido: 2022 results disappointing due to China and Japan
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