Japan · Delayed Price · Currency is JPY Shiseido Company Earnings Call Transcripts
Fiscal Year 2026
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Core operating profit rose to JPY 13 billion in Q1 2026, up JPY 4.8 billion year-over-year, despite a 3% sales decline. Structural reforms and disciplined investment drove profit growth, with strong performance in Americas and Asia Pacific, while Japan and EMEA faced headwinds.
Fiscal Year 2025
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Core operating profit and free cash flow exceeded targets in FY 2025, driven by structural reforms and cost management. FY 2026 guidance targets a 7% operating margin, with continued focus on innovation, capital efficiency, and risk management amid volatile market conditions.
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Q3 marked a return to positive sales growth, driven by structural reforms, innovation, and strong brand performance, despite a net loss from non-cash impairment in the Americas. The company maintains its core operating profit target and aims for double-digit margins by 2030, with continued cost optimization and global expansion.
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Structural reforms and cost reductions drove improved profitability in H1, with core operating profit exceeding expectations and over 60% of full-year guidance already achieved. Downside risks remain in Japan inbound and Americas, but China and Travel Retail offer upside.
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ELIXIR and ANESSA are driving strong growth and profitability through strategic product focus, channel expansion, and innovation, with ELIXIR outpacing company-wide growth and ANESSA strengthening its leadership in Asia. Both brands emphasize sustainability and social value creation.
Fiscal Year 2024
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Core operating profit exceeded forecasts in 2024, driven by strong performance in Japan and Europe, while net income was negative due to structural reform costs. 2025 guidance targets 4% sales growth and continued profit improvement, with ongoing reforms and focused investment in core brands.
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Q3 saw an 8% sales decline year-over-year, with profit driven by Japan's strong performance and cost controls, but travel retail in China and the Americas underperformed. Full-year core operating profit forecast was cut to JPY 35 billion, with ongoing structural reforms and a focus on building a resilient, profitable structure.
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First half 2024 saw a 1% year-over-year sales decline and a significant drop in core operating profit, mainly due to weakness in Travel Retail and China, despite strong growth in Japan and EMEA. Cost reduction and restructuring efforts are on track, with a focus on core brands and digital expansion for recovery.