Shisiedo profits plunge 36%
Outlook uncertain due to sharp rise in the yen
The Japanese cosmetics group Shiseido has reported a drop of over almost 36% in net profits for the first nine months of 2011 ending 31 December last year on net sales rising by only 0.8% to 490.7bn yen. Operating profits rose by 5.5% in the same period.
The company says that in the nine month period (April - December 2011) the domestic economy showed signs of a moderate turnround but the outlook became uncertain owing to the sharp rise in the yen. Consumer sentiment remained weak with negative growth in the domestic cosmetics sector. Japanese cosmetics business in the reporting period fell 3.3% to 260.3bn yen.
Sales of the global cosmetics operation in contrast went up 6.3% to 223.9bn yen with growth in all the major markets. The Chinese market remained solid and there was steady growth in Europe and the Americas. Fragrances did well in Europe as did the Nars make-up brand in the Americas. Overall operating income went up 5.5% in the period to 26.7bn yen but net profits fell 35.9% to 5.8bn yen.