THE WHAT? Pola Orbis has announced FY2021 net sales rise of 1.3 percent YOY to ¥178,642.
THE DETAILS Operating income was up 22.8 percent to ¥16,888 yen, up from ¥13,752 FY2020 with shareholders seeing a 6.9 percent return on equity, up from 2.6 percent in 2020.
Looking at each category. Beauty Care operating results rose 1.5 percent to ¥174,150.
According to a press release, “Pola is seeking to further improve the value of its brand and establish its customer foundation over the medium to long term, through efforts to launch highly functional products mainly in the field of anti-aging and skin- brightening, and to focus on the growth markets of China and travel retail.
“In the domestic business, POLA has worked to strengthen online consulting in the e-commerce business, which is rapidly growing, as a measure to improve communication during the COVID-19 pandemic.”
THE WHY? Pola focused heavily on the pandemic when reviewing its financial results, stating, “During the fiscal year ended December 31, 2021 (January 1–December 31, 2021), the Japanese economy suffered unavoidable restrictions on economic activities. This was due to the spread and prolongation of COVID-19 (the novel coronavirus), which led to declarations of a state of emergency and applications of quasi-emergency measures.”
The company highlighted that consumption had declined in the domestic cosmetics market due to the collapse of inbound demand as a result of COVID-19.
Pola said, “In the overseas cosmetics market, there was a general trend toward recovery from the decline caused by COVID-19, with variations in each country or region.”
However, it noted that from the end of 2021 until now, new cases of the virus have increased rapidly, so the situation has become more severe.
“Within this market environment, the POLA ORBIS Group has worked to achieve the key objectives – “evolving domestic direct sales,” “growing overseas businesses profitably,” “profit contribution from brands under development,” “strengthening operations,” and “expanding new brands and domains of ‘beauty’.”