Pola Orbis Holdings Inc. · TSE:4927
Pola Orbis — Q1 2025 Earnings Presentation
28 slides from Pola Orbis's earnings presentation, 2025
Slide 1: First Quarter of Fiscal 2025 Supplementary Material
First Quarter of Fiscal 2025 Supplementary Material POLA ORBIS HOLDINGS INC. Director and Vice President Finance, Legal, Administration and IR Naoki Kume This report contains projections of performance and other projections based on information currently available and certain assumptions judged to b
Slide 2: Agenda: Highlights of Consolidated Performance
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Initiatives Going Forward 4. Forecasts for Fiscal 2025 5. Appendices 1 First, let me explain the consolidated performance. Please, see page two.
Slide 3: Q1 Key Topics
Q1 Key Topics Cosmetics Market The scale of the Japanese cosmetics market as a whole was on par with the previous year. Although the Chinese cosmetics market showed signs of recovery, consumption trends are unclear and require close monitoring. Source: Ministry of Economy, Trade and Industry, Mi
Slide 4: Consolidated P&L Changes Analysis: Net Sales to Operating Income
Consolidated P&L Changes Analysis Net Sales to Operating Income FY2024 FY2025 YoY Change (mil. yen) Q1 Results Q1 Results Amount % Net sales 40,886 41,313 427 1.0% Cost of sales 7,360 7,270 (89) (1.2%) Gross profit 33,525 34,042 517 1.5% SG&A expenses 30,168 29,894 (273) (0.9%) Operating income 3,35
Slide 5: Consolidated P&L Changes Analysis: Operating Income to Profit Attributable to Owners of Parent
Consolidated P&L Changes Analysis Operating Income to Profit Attributable to Owners of Parent FY2024 FY2025 YoY Change (mil. yen) Q1 Results Q1 Results Amount % Operating income 3,357 4,148 790 23.5% Non-operating income 1,423 137 (1,285) (90.3%) Non-operating expenses 105 1,815 1,709 - Ordinary inc
Slide 6: Factors Impacting Profit Attributable to Owners of Parent
Factors Impacting Profit Attributable to Owners of Parent Despite an increase in operating income, profit attributable to owners of parent decreased by ¥1,816 mil. YoY due to the impact of foreign exchange rates. (mil. yen) Positive impact Negative impact 166 363 239 312 162 3,126 350 2,994 Foreign
Slide 7: Agenda: Segment Analysis
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Initiatives Going Forward 4. Forecasts for Fiscal 2025 5. Appendices 6 Continuing on, here is the segment analysis. Please see page seven, the segment results.
Slide 8: Segment Results
Segment Results FY2024 FY2025 YoY Change (mil. yen) Q1 Results Q1 Results Amount % Consolidated net sales 40,886 41,313 427 1.0% Beauty care 39,552 39,811 259 0.7% Real estate 499 737 238 47.7% Others 834 764 (70) (8.4%) Consolidated operating income 3,357 4,148 790 23.5% Beauty care 3,575 4,132 557
Slide 9: Beauty Care Business Results by Brands
Beauty Care Business Results by Brands FY2024 FY2025 YoY Change (mil. yen) Q1 Results Q1 Results Amount % Beauty care net sales 39,552 39,811 259 0.7% POLA 22,161 22,098 (63) (0.3%) ORBIS 11,446 12,169 723 6.3% Jurlique 2,270 2,069 (201) (8.9%) Brands under development 3,673 3,474 (199) (5.4%) Beaut
Slide 10: Brand Analysis (1)
Brand Analysis (1) Q1 Result Topics The declining revenue trend in consignment sales improved due to Launched the first serum for the entire face stronger approaches to existing customers, a rise in purchase per containing NEI-L1 from the WRINKLE SHOT customer, and sales growth at growing stores
Slide 11: Brand Analysis (2)
Brand Analysis (2) Q1 Result Topics We achieved increased revenue and double-digit income growth due to Expanded ORBIS U base makeup higher lifetime value (LTV) and an increase in customer contact points. In the direct selling channel, the strong performance of highly functional and high-price
Slide 12: Brand Analysis (3)
Brand Analysis (3) Q1 Result Topics Sales remained sluggish amid a challenging market environment. Launched a limited-edition body oil in Losses were reduced through structural reforms and cost control. 40th anniversary packaging (January) Organizational restructuring progressed as planned. Ro
Slide 13: Brand Analysis (4) Brands Under Development
Brand Analysis (4) Brands Under Development Q1 Result Topics DECENCIA’s revenue increased as customer retention improved. Launched a skin-brightening cream for Both revenue and income fell for THREE, with lower-than-planned sensitive skin from the DECENCIA customer acquisition for holistic car
Slide 14: Agenda: Initiatives Going Forward
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Initiatives Going Forward 4. Forecasts for Fiscal 2025 5. Appendices 13 Pages 13 to 15, the initiatives going forward, will be skipped.
Slide 15: Initiatives for FY2025 Q2 Onward
Initiatives for FY2025 Q2 Onward Strengthen proposals for skin-brightening serum and sunscreen in preparation for the peak demand period for skin-brightening, and introduce kit products that include sun protection products to stimulate customer demand. Aesthetic treatment to capture the overall
Slide 16: Initiatives for FY2025 Q2 Onward
Initiatives for FY2025 Q2 Onward Reduce losses through steady implementation of structural reforms and thorough cost control. Revamp the sensitive skincare series for new customer acquisition, promoting customer acquisition with natural and highly functional skincare. Skincare for sensitive skin
Slide 17: Agenda: Forecasts for Fiscal 2025
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Initiatives Going Forward 4. Forecasts for Fiscal 2025 5. Appendices 16
Slide 18: Forecasts for Fiscal 2025 (Unchanged)
Forecasts for Fiscal 2025 (Unchanged) FY2024 YoY Change FY2025 YoY Change Full-year (mil. yen) Amount % Full-year Plan Amount % Results Consol. net sales 170,359 (2,944) (1.7%) 174,000 3,640 2.1% Beauty care 165,060 (3,417) (2.0%) 168,200 3,139 1.9% Real estate 2,214 135 6.5% 2,900 685 31.0% Others
Slide 19: Agenda: Appendices
1. Highlights of Consolidated Performance 2. Segment Analysis 3. Initiatives Going Forward 4. Forecasts for Fiscal 2025 5. Appendices 18
Slide 20: (Appendix) Quarterly Segment Results
(Appendix) Quarterly Segment Results FY2025 Jan.–Mar. FY2025 Apr.–Jun. FY2025 Jul.–Sep. FY2025 Oct.–Dec. YoY YoY YoY YoY (mil. yen) Results Results Results Results Change Change Change Change Consolidated net sales 41,313 1.0% - - - - - - Beauty care 39,811 0.7% - - - - - - Real estate 737 47.7% - -
Slide 21: (Appendix) Quarterly Beauty Care Business Results by Brands
(Appendix) Quarterly Beauty Care Business Results by Brands FY2025 Jan.–Mar. FY2025 Apr.–Jun. FY2025 Jul.–Sep. FY2025 Oct.–Dec. YoY YoY YoY YoY (mil. yen) Results Results Results Results Change Change Change Change Beauty care net sales 39,811 0.7% - - - - - - POLA 22,098 (0.3%) - - - - - - ORBIS 12
Slide 22: (Appendix) Beauty Care Business Results for FY2022–FY2024 by Brands
(Appendix) Beauty Care Business Results for FY2022–FY2024 by Brands FY2023–FY2024 FY2022 FY2023 FY2024 YoY Change (mil. yen) Results Results Results Amount % Consolidated net sales 166,307 173,304 170,359 (2,944) (1.7%) Beauty care net sales 161,654 168,477 165,060 (3,417) (2.0%) POLA 96,371 98,499
Slide 23: (Appendix) Sales Results by Channels: POLA and ORBIS
(Appendix) Sales Results by Channels: POLA and ORBIS FY2024 FY2025 YoY Change (mil. yen) Q1 Results Q1 Results Amount % POLA net sales 22,161 22,098 (63) (0.3%) Domestic(1) 18,559 18,974 414 2.2% Consignment sales 13,310 13,240 (70) (0.6%) Department store 2,696 3,013 317 11.7% E-commerce 1,739 1,74
Slide 24: (Appendix) About POLA ORBIS Group
(Appendix) About POLA ORBIS Group Beauty care is the core business of the Group, and six different cosmetics brands are operated under the Group umbrella. FY2024 Consol. Net Sales ¥170.3 bn. Overseas Flagship Brands Under Brand Brands Development ¥20,000 High Prestige Price Range ¥10,000 Prestige ¥5
Slide 25: (Appendix) Beauty Care Business Brand Portfolio
(Appendix) Beauty Care Business Brand Portfolio Sales Ratio* Brand Concept and Products Price Main Sales Channel Japan: Consignment sales, department stores, e-commerce and High-prestige skincare Approx. cosmetics specialty stores 56% Leading-edge technology in aging- ¥10,000 Overseas: Depar
Slide 26: (Appendix) Improvement in Capital Efficiency and Shareholder Returns
(Appendix) Improvement in Capital Efficiency and Shareholder Returns 【Enhancing Capital Profitability】 Return on equity (ROE) has been declining due to the decrease in profit. Under the Medium-term Management Plan, we aim to achieve ROE of at least 10% by 2026 through capital profitability enhanceme
Slide 27: (Appendix) Long-term Management Plan – VISION 2029
(Appendix) Long-term Management Plan – VISION 2029 VISION 2029 A collection of unique businesses that respond to diversifying values of “beauty” Basic strategy 1 Develop the cosmetics business globally; reform and enhance the brand portfolio Basic strategy 2 Create new value and expand business doma
Slide 28: (Appendix) 2024–2026 Medium-term Management Plan
(Appendix) 2024–2026 Medium-term Management Plan Management Indicators for 2026 Domestic Net Sales CAGR approx. 4% Consolidated ¥200.0 bn. Overseas Net Sales CAGR approx.12% Net Sales CAGR approx. 5% Overseas Sales Ratio 20% Consolidated Operating Income Operating margin 12-13% Consolidated payout r