THE WHAT? Shiseido is on the road to recovery after COVID-19 saw sales plummet some 26 percent in the first half of 2020. The J-beauty behemoth’s latest set of results tell a different story, with sales rising 21.5 percent in the first six months of 2021, reaching ¥507,687 million.
THE DETAILS CFO Takayuki Yokota said that the company’s strong global footprint offset weak momentum in Japan with net sales ex-Japan rising 29 percent yoy. Indeed, overseas business grew substantially in the period, driven by China, EMEA and the Americas.
In terms of category, skin care was the main growth driver, and now accounts for some 63 percent of sales, Shiseido said. Operating profit increased ¥26.4 bullion yoy due to higher margins resulting from stronger sales and cost management and EBITDA grew ¥25.1 billion, with EBIDTA margin hitting 7.7 percent.
THE WHY? Shiseido launched its medium-to-long-term strategy, WIN 2023 and Beyond, at the start of the year and the changes implemented thus far, reflecting market changes caused by the pandemic, are paying off, which, coupled with the vaccination roll-out and gradual lifting of restrictions in Europe and US, is driving recovery of across all cosmetic categories, even make-up, the J-beauty giant said.