Shiseido Co Ltd Ord (SSDOF) Q1 2026 Earnings Call

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WEBVTT 00:00:01.668 -- 00:00:06.836 Thank you very much. So this is Fujiwara, the CEO and the president of the company. 00:00:06.836 -- 00:00:12.445 Now, first, let me introduce the key points of Q1 2026 financial results. 00:00:12.445 -- 00:00:17.733 Day three. In the first quarter, while challenges remain in terms of sales, profit growth 00:00:17.733 -- 00:00:19.837 exceeded expectations. 00:00:19.837 -- 00:00:24.945 Core operating profit was 13 billion yen, an increase of 4.8 billion yen year over 00:00:24.945 -- 00:00:26.945 year. 00:00:27.149 -- 00:00:32.698 We believe this is a result of the structural reforms implemented over the past 00:00:32.698 -- 00:00:38.266 few years, functioning effectively even during periods of declining revenue, improvements 00:00:38.266 -- 00:00:41.769 in fixed cost structure and discipline. 00:00:43.475 -- 00:00:48.442 The investment decisions have strengthened our so-called management strength or resilience 00:00:48.442 -- 00:00:53.558 to environmental changes. On the other hand, net sales were 232 billion yen, 00:00:53.558 -- 00:00:56.302 representing a real growth rate of minus 3%. 00:00:56.302 -- 00:01:01.951 This year's biggest theme is shifting to a new growth trajectory, and we take this 00:01:01.951 -- 00:01:06.999 figure very seriously. However, we have clearly identified 00:01:06.999 -- 00:01:12.087 that factors contributing to the declines in sales by brand and region, and we have 00:01:12.087 -- 00:01:16.120 already taken some actions, and I would like to cover that later. 00:01:16.120 -- 00:01:21.329 Previously, optimism about the sales growth and delays 00:01:21.329 -- 00:01:27.739 in responding to market changes sometimes led to the cost 00:01:27.739 -- 00:01:32.828 adjustment being delayed. Currently, we are shiftin...