Japanese cosmetics maker Shiseido’s net loss widened to 1.27 billion yen (US$16.24 million) in the quarter to June 30 – more than four times the previous comparable period’s performance.  

Consolidated sales have dropped from 157.3 billion yen (US$2.01 billion) to 149.5 billion yen (US$1.91 billion), with domestic sales plunging to 82.1 billion yen (US$1.04 billion) from 89.6 billion yen (US$1.14 billion) due to the turmoil in the distribution system following Japan’s devastating earthquake.

Shiseido said it will introduce cost-cutting measures and restructure the corporate organisation to return to profit.

“We are considering how to change the structure, reviewing all the costs including marketing cost, labor cost, and overall infrastructure,” said president Hisayuki Suekawa.

For the fiscal year through March, Shiseido still expects to achieve a net profit of 22 billion yen (US$281.34 million).

GB