Shiseido in the red in the first half, penalized by Japan



Published on

August 5, 2021

© 2021 AFP – Still affected by the health crisis in Japan, the Japanese cosmetics group Shiseido on Thursday published a net loss in the first half of the year but left its annual forecasts unchanged.


Its net loss in the first half of the year amounted to 17.3 billion yen (133.3 million euros), barely lower than that of the first half of 2020 (-21.4 billion yen).

The net result thus deteriorated considerably over the period April-June, after a small loss of 1.5 billion euros in the first quarter, a surprise for analysts.

Shiseido put this underperformance mainly on the account of impairments linked to the planned end of its license agreements with the Italian fashion group Dolce & Gabbana, announced at the end of April.

The group, however, generated an operating profit in the first half of the order of 23 billion yen, against an operating loss of 3.4 billion yen a year earlier.

And its sales for the first six months of the year climbed 21.5% year on year (or + 17.7% at constant exchange rates) to 507.7 billion yen (3.9 billion euros ).

“Global economic conditions remained difficult in the first half of the year,” the group commented in a statement, highlighting in particular the negative impact of the state of emergency in Japan in the face of the pandemic, which is weighing on sales of cosmetics in the country.

The persistent convalescence of the airline sector and the continued closure of Japan to tourists from abroad are also slowing the resumption of its activity in “travel retail” (shops in airports).

But on the other hand, the group benefited from the general upturn in its sales outside Japan, especially in China, the United States and Europe.

For its full 2021 fiscal year, Shiseido still expects a net profit of 35.5 billion yen (273.3 million euros at the current rate), against a net loss of 11.7 billion yen per year. last.

It raised this target in May, thanks to an exceptional gain expected from the scheduled sale of its consumer cosmetics business to the CVC investment fund.

Shiseido is also targeting an annual operating profit of 27 billion yen (+ 80% over one year) for a turnover of 1.067 billion yen (8.2 billion euros), an improvement of 15.9% from compared to 2020.

etb / mac / abxTokyo, 5 Aug 2021 (AFP)

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