TOKYO — Shiseido said Wednesday that extraordinary gains and lower taxes fueled a 74 percent jump in full-year net profit and compensated for lower sales in both its home market of Japan and abroad.
Net profit for the year ended March 31 rose 73.8 percent to 33.67 billion yen, or $363 million at average exchange rates for the period. Sales slid 6.7 percent to 644.2 billion yen, or $6.94 billion.
The company said sales in Japan decreased on continued weak consumer sentiment. International revenues, which represent about 37 percent of the company’s business, increased in local-currency terms but fell on a reported basis due to the appreciation of the yen. The company noted the particular strength of the Chinese market.
Operating profit for the period inched up 0.9 percent to 50.35 billion yen, or $542.8 million.
For the fiscal year, ending March 31, 2011, Shiseido said it expects its net profit to fall 7.9 percent to 31 billion yen, or $331.3 million at current exchange, and its operating profit to increase 5.3 percent to 53 billion yen, or $566.5 million. It sees its sales rising 2.5 percent to 660 billion yen, or $7.05 billion.
“This forecast takes into account various factors, including [the] expected bottoming out of the domestic market in the second half of the year, [recovering] sentiment in European and North American markets, and sales growth in Asian markets centering on China,” Shiseido said.
The Japanese company said its net profit will decline as it won’t enjoy the same tax benefit it did for the fiscal year ending March 31.