Shiseido reports Q1 net profit boost due to higher sales and lower tax payments

Shiseido reports Q1 net profit boost due to higher sales and lower tax payments

Shiseido has reported a Q1 net profit increase of 16.1 percent to $305.5 million for the three months ending 31stMarch, according to a report by WWD.com.

The rise was attributed to lower year on year tax payments as well as an increase in net sales, which rose 3.7 percent to 273.62 billion yen.

Operating profit, however, fell 17.4 percent to 38.93 billion yen due to Shiseido’s current medium- to long-term strategy to invest in marketing, research and development, and human resources. The six-year plan is set to continue throughout 2020.

Regionally, Asia came out on top as the biggest growth market, excluding Japan, with China growing 15 percent while the rest of the Asia-Pacific region grew by 11 percent.

Shiseido reported a Q1 decline of less than 1 percent in Japan, the Americas and the Middle East.

Taking to a statement, the company said, “In the China business, the strong performance of prestige brands such as Shiseido, Clé de Peau Beauté, Ipsa and Nars continued, while sales of the Made in Japan cosmetics brands Elixir and Anessa continued to record significant growth.
“In the Americas business, fragrance brands such as Dolce and Gabbana and Narciso Rodriguez performed well, but sales of BareMinerals, which is in the process of closing unprofitable boutiques and other structural reforms, underperformed. Nars fell year-on-year mainly due to cycling of a new product launch in the first quarter of 2018.
“In the Japan business, we continued to see strong sales growth of Shiseido and Elixir, in which we have continued increasing marketing investment, and we also secured steady inbound demand from overseas tourists to Japan by strengthening cross-border marketing throughout Asia. We experienced a major opportunity loss after Revital wrinkle-lift cream and other products ran out of stock.”

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