TOKYO — Shiseido Group announced a 9.3 percent increase in sales for the first quarter compared with a year ago.
For the three-month period ended June 30, the Japanese cosmetics group announced net profits of $8.8 million (982 million yen) against net losses of $59 million (6.6 billion yen) for the same period a year ago. The Group showed net losses of $79.1 million (8.9 billion yen) for the fiscal year ended March 31. Figures are on a consolidated basis and were converted at current exchange rates.
Sales increased to $1.4 billion (157.5 billion yen) while income from operations was $94.9 million (10.6 billion yen), compared with operating losses of $6.9 million (778 million yen) a year ago, reflecting the gross profit increase from sales growth, in addition to a decrease in domestic personnel expenses. Sales from cosmetics that made up 79.3 percent of entire sales increased 7.1 percent from a year ago.
According to Shiseido, contributing factors to the increases included a revitalized Japanese economy and increases in capital investments. As well, Shiseido named Shinzo Maeda as the company’s new president, chief executive officer and representative director, and initiated a new three-year plan aimed at maximizing growth potential and improving profitability.
According to the company, domestic and international sales were robust, particularly in China. Domestic sales rose 7.4 percent to $1 billion (116.9 billion yen) and sales in the Americas were up 3.9 percent to $108 million (12.1 billion yen). Sales in Europe rose 5.8 percent to $195 million (21.8 billion yen) and sales from the Asia-Oceania region jumped 26.4 percent to $125.4 million (14 billion yen). The percentage of overseas sales against consolidated net sales was 28.8 percent.
For the fiscal year ending March 31, 2006, Shiseido projects net income of $120.5 million (13.5 billion yen) and net sales of $5.9 billion (660 billion yen).