Shiseido seeks restructuring after average fiscal year

Shiseido seeks restructuring after average fiscal year

Japanese cosmetics manufacturer Shiseido has had a rather average fiscal year: turnover only grew slightly and its profit numbers were not exactly spectacular as well, but a restructuring should lead to better results.

Profit thanks to one-off income

In its past fiscal year, which ended on 31 March, Shiseido managed a 777 billion yen turnover (6 billion euro), up 2.1 % and in line with expectations. The company's turnover on its home market grew 3.1 % to 35 billion yen (2.8 billion euro), while other markets grew 0.9 % - but the weak Japanese yen helped turn that into a 7.1 % turnover increase as exchange rates were beneficial to the company.

 

Company profit dropped 44.4 % to 27.6 billion yen (210 million euro) because of higher marketing costs and logistics issues in the United States. Net profit grew 28.8 % to 33.7 billion yen (260 million euro), thanks to one-off income (like the sale of the Decléor and Carita brands to French L'Oréal).

 

For its current fiscal year, shortened to 9 months, it expects profits to drop to 10 billion yen (75 million euro), but to present better numbers in the future, the company will speed up its restructuring plans.

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