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Shiseido income hit by currency variations

Japanese cosmetics group Shiseido has reported net earnings of ¥32 billion yen (US$281 million) for last year, but was hit by currency variations.

Moving to a calendar-based accounting period, the group has recalculated its revenue and indicates “for reference” that it has increased by 9 per cent on a year-on-year basis.

It says there were one-off benefits related to the transfer of rights of Jean-Paul Gaultier-branded perfumes and the sale of the site of a former factory. This means it expects net profit to drop 19 per cent this year.

Operating profit stood at ¥36.7 billion, a decline of 17 per cent (according to the retrospective calculation). With the unfavourable currency exchange, total revenue declined by 1.5 per cent to ¥850.3 billion yen (again with the recalculation).

Sales in Japan, which comprise nearly half of total sales, grew by 2.9 per cent. Abroad, its profit has declined by 4.2 per cent in yen (but increased by 11.4 per cent in local currency). Profits have fallen by 5.9 per cent in the Asia-Pacific region because of currency exchange negativity, without which it would have seen growth of 7 per cent.

In duty-free boutiques – particularly in airports in China, South Korea and Thailand – sales have jumped by 44 per cent.

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