TOKYO — Shiseido said Wednesday that its nine-month net profits more than doubled based on adjusted figures for the same period a year earlier. The company attributed the growth to gains on the sale of intellectual property rights associated with the Jean Paul Gaultier fragrance business, as well as an extraordinary gain on the sale of land at a former factory.
For the nine months ended Sept. 30, Japan’s largest cosmetics company posted a net profit of 37.18 billion yen, or $343.1 million at average exchange rates for the period. Last year, Shiseido changed its fiscal year end from March to December, so comparative figures have been adjusted to account for the same January-to-September period.
The company’s operating profits grew 17.1 percent to 38.74 billion yen, or $375.5 million.
Shiseido’s nine-month sales took a slight hit, slipping 1.3 percent to 622.73 million yen, or $5.75 billion.
“The company is shifting all of its activities toward a consumer-oriented focus while working to enhance its brand value,” Shiseido said. “In this manner, Shiseido is making every effort to become a global beauty company that can excel on the world stage with its roots firmly entrenched in Japan.”
Shiseido’s sales grew in Japan and China, but fell in the Americas; Asia-Pacific, and Europe, the Middle East and Africa (EMEA). However, discounting the effects of currency translation, sales would have grown in all markets but EMEA, which was affected by a decline in Gaultier sales following the termination of the licensing agreement. Sales were also boosted by the acquisition of the Laura Mercier and RéVive brands in July.
Shiseido left unchanged its guidance for the 12 months ending Dec. 31. It expects net profits to grow by 1.8 percent to 30 billion yen, or $286.7 million at current exchange.
The company is predicting operating profits will drop by 32.3 percent to match its net at 30 billion yen.
It forecasts a decline in sales of 1.8 percent to total 848 billion yen, or $8.1 billion.