TOKYO — Shiseido said its nine-month net profit plunged on charges linked to a change in Japan’s taxation policy. The beauty firm also cut its full-year earnings forecast.
Net profit for the nine months ended Dec. 31 fell 35.9 percent to 5.77 billion yen, or $73.27 million at average exchange rates for the period.
Operating income increased 5.5 percent to 26.75 billion yen, or $339.43 million.
Net sales grew 0.8 percent to 490.70 billion yen, or $6.23 billion. While Shiseido’s sales in the Japanese market fell 2.5 percent, the company experienced stronger performance in international markets, where sales grew by 5.4 percent.
Currently Shiseido’s home market of Japan accounts for 59 percent of revenue, while international markets make up 41 percent.
In a release, the company cited “solid results in China and steady growth of the global brand Shiseido in Europe and the Americas, as well as favorable performances by fragrances in Europe and the makeup brand Nars in the Americas” as reasons for its sales growth outside of Japan.
While it left unchanged its full-year operating profit and sales forecasts, Shiseido revised downward its net profit outlook for the 12 months ending March 31. It now expects net profit to increase 32.9 percent to 17 billion yen, or $221.92 million at current exchange.
This is compared with a previous forecast of 21 billion yen, or $274.15 million. The company forecasts operating profit will decline 10 percent to 40 billion yen, or $522.18 million. Sales are expected to grow 1.4 percent to 680 billion yen, or $8.88 billion.
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