Shiseido's margins surge as sales slide: profit up 58% on cost cuts, China drag persists
Q1 core operating profit jumped 58% to ¥13bn and net profit more than doubled to ¥8.4bn, even as like-for-like sales fell 3%. Anessa sunscreen sales dropped 17% globally and over 40% in China, while inbound spend in Japan slid 20%. Hsinchu factory closure and travel-retail rerouting target ¥1bn in annual savings by H2 2027.
What happened
Shiseido's Q1 core operating profit jumped 58% and net profit doubled despite a 3% sales decline. China weakness and absent Chinese tourists hurt Japan and
Key facts
- core operating profit +58% to 13bn yen
- net profit +127% to 8.4bn yen
- like-for-like sales -3%
- Japan inbound sales -20%
- Anessa global sales -17%, China -40%+
- China & Travel Retail OP +18% to 15.7bn yen
- Drunk Elephant acquired 2019 for US$845m
- restructuring cost ~3.5bn yen
- annual savings ~1bn yen by H2 2027
Why this matters
Travel-retail rerouting and the Hsinchu shutdown free up ¥1bn annually by H2 2027, opening a window to bolt on prestige or sun-care assets that can backfill Anessa's China gap before competitors consolidate the category.