GCI Magazine

Marketers Sponsored by

Email This Item!
Increase Text Size

Shiseido Posts Consolidated Net Sales of ¥162.4 billion, up 8.6%

Posted: July 31, 2013

Shiseido announced its consolidated settlement of accounts for its first quarter of the fiscal year ending March 31, 2014. The company recorded net sales of ¥162,363 million, an 8.6% increase from ¥149,447 million in the same quarter last year. With an operating income of ¥6,875 million, net income for Shiseido for the quarter came to ¥2,658 million.

The company reported, in the first quarter under review (three-month period from April 1 to June 30, 2013), economic sentiment in Japan was characterized by signs of recovery on the back of a correction of the strengthening yen, stemming from financial liberalization aimed at breaking the deflationary cycle, as well as recovery in stock prices and an improved employment situation. The domestic cosmetics market also showed indications of a turnaround. Overseas, the Americas and Asia, including China, continued posting moderate economic growth, but conditions weakened in Europe. Similarly, cosmetics markets in the Americas and Asia enjoyed sustained growth, while growth was negative in Europe. (For overseas subsidiaries, the “first quarter” refers to the period from January 1 to March 31, 2013.)

In this environment, Shiseido adopted a policy of making its strong fields stronger and its big fields bigger, while making profitable fields more profitable. To this end, it concentrated business resources in three areas: Japan, China and Bare Escentuals, Inc. It also worked to improve profitability by pursuing “meticulous distinction and concentration.”

For the quarter, Shiseido posted consolidated net sales of ¥162.4 billion, up 8.6% from the previous corresponding period. The domestic cosmetics business segment reported a 0.4% rise in sales, to ¥75.8 billion, due to several factors. These included healthy performances by MaquillAge and Elixir,—which are core lines in the mid-priced range, as well as increased sales of the global brand Shiseido in the department store channel.

In the global business segment, sales in China increased thanks to higher year-on-year shipments stemming from a change in the timing of the Chinese New Year. In the Americas, however, despite a solid performance by the makeup brand Nars, sales of BareMinerals declined due to stagnation in the retail business and other factors, while sales in Europe languished due to the sluggish economy. In local-currency terms, therefore, the sales increase posted by the global business segment was limited to 0.9%. After converting to yen, however, segment sales jumped 17.5%, to ¥84.3 billion.

Operating income amounted to ¥6.9 billion, reflecting several factors. These included a marginal gain stemming from higher net sales, as well as rigorous marketing spending targeting core focal fields. The company also pursued comprehensive cost reductions centered on cost structural reforms, and in Japan its reduced personnel expenses, including bonuses and pension costs. Ordinary income totaled ¥7.6 billion, and net income was ¥2.7 billion.

Click here to read the full financial report on its first quarter for the year ending March 31, 2014, from Shiseido.

New Book by Dr. Hiroshi Fukui, a Research Fellow at the Shiseido Frontier Science Research Development Center, Ideal to Entice High School or College Students into the Sciences

Cosmetics Made Absolutely Simple, translated from its original Japanese into English, is a quick-paced, well-illustrated, basic science book covering a multitude of areas having to do with skin, hair, fragrance, sun, and cosmetics. Interesting science for everyone!

Find Out More! Alluredbooks-Less is More Skin, Hair, and Cosmetic Science