TOKYO — Shiseido announced that its net income for the 12 months ended March 31 grew 13.5 percent year-on-year, due mainly to a low comparative based caused by extraordinary losses in the previous year.
Japan’s largest cosmetics company’s net income for the fiscal year totaled 14.52 billion yen, or $183.91 million at average exchange rates for the period.
Operating income dropped 12 percent to 39.14 billion yen, or $495.84 million.
“This was due to aggressive marketing investments targeting growth in Japan and overseas,” the company said in a statement.
Shiseido’s net sales were up 1.7 percent, coming in at 682.39 billion yen, or $8.65 billion. In the company’s home market, revenues declined 0.8 percent to 379.96 billion yen, or $4.81 billion, which Shiseido attributed to factors including “polarization towards high-priced and low-priced products… the impact of the [March 11, 2011] earthquake and ongoing overall market contraction.” Overseas sales, however, increased 5.1 percent to 302.42 billion yen, or $3.83 billion, “bolstered by sustained growth in Europe and the United States, together with continued high growth rates in Asia, especially in China.”
For the current fiscal year, ending March 31, 2013, Shiseido expects net income to grow 51.6 percent to 22 billion yen, or $271.38 million at current exchange. The company forecasts operating income will be up 11.2 percent to 43.5 billion yen, or $536.6 million, while sales are expected to increase 5.5 percent to 720 billion yen, or $8.88 billion.
“In the year ending March 2013, we expect the domestic cosmetics market to follow a moderate recovery path, despite some uncertainty about the future,” the company stated. “The pace of growth in the European cosmetics market is slowing due to the impact of the financial crisis. The North American cosmetics market is expected to maintain positive growth amid an economic recovery. In Asia, meanwhile, we look forward to continued market growth, especially in China.”