Earnings Jump at Shiseido, Annual Forecast Lowered
TOKYO — Shiseido Group saw rises in sales and profits on a consolidated basis for the nine months ending Dec. 31. However, the company projects a net decrease for the entire fiscal year due to extraordinary losses for a special early retirement plan the company has offered employees.
Net profits rose 16.1 percent to 13.73 billion yen, or $133 million at average exchange rates while operating profits dropped 16.1 percent to 24.46 billion yen, or $237 million, compared with the same nine-month period a year ago. Sales rose 2.7 percent to 472.17 billion yen, or $4.58 billion, from a year ago.
Sales from cosmetics rose 3 percent to 372.41 billion yen, or $3.61 billion, while sales of toiletries dropped 4.7 percent to 45.26 billion yen, or $438.6 million.
Sales from the Americas showed a decline of 1.2 percent to 33.14 billion yen, or $321.1 million, on the yen basis, while sales from Europe rose 11.4 percent to 53.27 billion yen, or $516.2 million. Sales from the Asia/Oceania region increased 16.3 percent to 40.2 billion yen, or $389.5 million.
For the entire fiscal year ending March 31, however, Shiseido projected net losses of 14 billion yen, or $134.7 million at current exchange rates, against its initial projection of net profits of 12 billion yen, or $115.4 million, on a consolidated basis. The revised expectations are due to about 30.1 billion yen, or $290 million, in extraordinary losses caused by expenses from retirement allowances for 1,364 applicants to a special Shiseido early retirement plan, according to the Japanese beauty giant.
Under the incentive plan, about 1,000 full-time employees working for Shiseido and its domestic group firms — who will be between 50 and 59 years old and in service for 15 years or more as of March 31 — sought early retirement from Dec. 13-24. There are about 25,000 employees in the whole group.
“The objective of this plan is to support and offer wider options to employees in advanced age groups to suit their individual life plans,” the group stated. “Reemployment support services also will be offered to applicants who desire to transfer to new fields.”
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