Shiseido Co Ltd Ord (SSDOF) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

I would like to present the first quarter results for 2025. First, please refer to page 3, key highlights of the financial results. Amid continued uncertainty in the business environment, our top priorities remain rigorous profit management and steady execution over action plans. Although first quarter net sales fell short of expectations, we secured core operating profit of 8.3 billion yen, an equivalent level with our plan thanks to the effects of the structural reforms and strengthened cost management. While maintaining our full-year forecast, we will continue to closely monitor the impact of tariffs and implement additional measures as necessary. Further details on this will be provided later by Mr. Fujiwara. Net sales declined by 9% versus last year on like-for-like basis. In our February disclosure, we had anticipated a decline in the low single digits for the first half. However, results in the first quarter were affected by high year-over-year comparisons in China and travel retail, as well as the assumption that Drunk Elephant would not see a full recovery. In such circumstances, China, travel retail, and the Americas performed with challenging results as expected. And on top of that, consumer purchases maintained strong, but shipment declined in Japan and EMEA, making the year start with a slight lower start to plan. Healthy sales growth is essential for the sustainability of our company business growth. We will further explain about the sales performance assessment and the future plans shortly. Core operating profit was 8.3 billion yen, a decline year-on-year. However, thanks to the structural reforms, notably in Japan, and strengthened company-wide cost management, results were largely in line with expectations. Regarding the impact of tariffs, we have al...