Shiseido, the renowned Japanese cosmetics giant, has announced a remarkable surge in net profits for the first quarter of this year. Despite this positive outcome, the company has opted not to raise its full-year forecasts due to uncertainties prevailing in the global market.

During the period from January to March, Shiseido witnessed a nearly twofold increase in its net profit as compared to the preceding year, amounting to 8.7 billion yen (59 million euros). This noteworthy improvement can be attributed to enhanced sales and effective cost management. Additionally, the operating profit also experienced a substantial surge of 140%, reaching 10.5 billion yen (71.2 million euros) within the same timeframe.

However, the company’s sales for the quarter ascended merely by 2.6% in comparison to the previous year, totaling 240 billion yen (1.6 billion euros). Shiseido clarified that when the effects of exchange rates and transfers of activities are excluded, sales actually increased by 7.7%. Despite these positive indicators, the company acknowledges the persisting uncertainty caused by the war in Ukraine and the escalating prices.

Therefore, Shiseido has made the decision not to revise its annual forecasts. The company anticipates a net profit of 28 billion yen (190 million euros), a decrease of 18.1% in comparison to the previous year, and sales of 1,000 billion yen (6.8 billion euros), a decline of 6.3% as compared to 2022.

The first quarter proved to be challenging for Shiseido, particularly in its second-largest market, China. Sales in China were affected by the surge in Covid-19 cases in January. Furthermore, the company’s travel retail business faced setbacks due to “inventory adjustments” in shops.

On the other hand, Shiseido achieved sustained growth in its domestic market, Japan, owing to the launch of new products that capitalized on the industry’s recovery in the country. The company also reported increased sales in the Americas, EMEA, and Asia-Pacific regions.

While the first-quarter performance of Shiseido appears promising, the company continues to vigilantly monitor global conditions, maintaining a cautious stance regarding the future.

Useful links:
1. Shiseido Official Website
2. BBC Article on Shiseido’s Performance