Shiseido Upgrades Research Facility
TOKYO — Shiseido has expanded its Beijing-based research center as part of an upgrade that includes the construction of a 32,345-square-foot building at the three-year-old facility.
By relocating the Shiseido China Research Center Co. Ltd. to a new building it is “able to pursue research and development activities across an even wider range of domains,” the company stated. The expanded facility also is intended to “help enhance the functions and quality of products not only for the Chinese market but also for global markets.”
The newly constructed building is roughly 10 times the size of the previous facility.
The Shiseido opening, which was held Monday, marks the second opening of an R&D center in China by a major beauty company in as many weeks, reflecting expanded R&D investment by the industry in that country. Last week, the Estée Lauder Cos. opened its first research center in China, a 9,225-square-foot facility in Shanghai.
Shiseido’s China Research Center was opened in April 2002 on the site of subsidiary Shiseido Liyuan Cosmetics Co. Ltd. Since initiating operations, the “China Research Center has made steady progress in establishing a research structure for undertaking its main functions of studying local Chinese cosmetics practices, carrying out research on skin and hair and developing products for the China market,” Shiseido stated. It also has engaged in “research on traditional Chinese medicine and developing the seeds of products for the global market.”
To date, the China Research Center has contributed to the development of Shiseido’s Aupres Eternal Total Recharge Cream, which was launched last year under the Aupres brand exclusively in the Chinese market. Sinoadore, a brand based on traditional Chinese medicine, was developed at the center and bowed in Japan in August 2004.
In line with a companywide growth strategy focused on international business, Shiseido is promoting aggressive investment and has positioned China as a key overseas market and base of operations.
— Koji Hirano
Inter Parfums Ups Forecast
PARIS — Inter Parfums SA hopes to end the year on a high.
In a statement on Monday, the Paris-based subsidiary of Inter Parfums Inc., said that it expects full-year operating profits to reach 24.5 million euros, or $28.7 million at current exchange rates, versus initial projections of 22.9 million euros, or $26.8 million.
The company said its operating margin should come in at 12.8 percent, outperforming the original forecast of 12 percent. The company now expects net income to reach 15.6 million euros, or $18.3 million, versus its original projection of 14.7 million euros, or $17.2 million. Inter Parfums cited the “successful implementation of our new operating organization and excellent cost control” as the reasons behind the increase in forecasts.
Looking further into the future, the company forecasts 2006 sales of 215 million euros, or $252 million, which would represent a 12 percent increase over 2005’s projected turnover of 192 million euros, or $225 million. Earnings are expected to grow 14 percent to reach 28 million euros, or $33 million, and net income is anticipated to reach 18 million euros, or $21 million, an increase of 15 percent.
As reported, launches planned for 2006 include Burberry scents for men and women, plus a women’s fragrance for Lanvin in the fall.
Meanwhile, New York-based Inter Parfums Inc. said in a separate statement released Monday after the close of U.S. stock markets that earnings in 2006 are expected to increase at a faster rate than sales. Assuming the dollar remains at current levels, net income in the year is seen rising 16 percent to $16.9 million, or 83 cents a diluted share, including an after-tax charge of 3 cents related to expensing stock-based compensation. Analysts are calling for a profit of 80 cents.
The company said 2006 net sales should increase 10 percent to about $301 million. The analyst consensus is for revenues of $304.95 million.
— Ellen Groves and Meredith Derby