Shiseido Co Ltd Ord (SSDOF) Q3 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

From here, I would like to explain the third quarter performance for 2024. First, please take a look at summary on page 3. After the summer, travel retail in China faced further challenges. The third quarter was a quarter focused on achieving profit by thoroughly improving efficiency and scrutinizing costs. The good news is Japan. The results of the reforms implemented so far are clearly reflected in the significant increase in profits, which has become a key driver supporting the overall company's profitability. Consolidated net sales on a like-for-like basis, excluding the impact of foreign exchange and all business transfers, declined by 8% in the three months from July to September and by 3% on a cumulative basis for the third quarter. In Japan, the core brands continue to perform well with the launch of new products in the third quarter driving strong growth. Despite a slowdown in inbound sales, the overall business in Japan continued to show double-digit growth on a cumulative basis. In EMEA, sales declined in the third quarter due to shipping delays and other timing issues, but on a cumulative basis, sales showed an increase. On the other hand, in travel retail in China, the decline in Chinese consumer demand, which became evident in the first half of the year, accelerated further in the third quarter, resulting in a greater than expected decrease in sales. In the Americas, net sales continued to decline in the third quarter. The production shortfall caused by IT system implementation issues in the second quarter, which had led to a significant sales decline, has been largely resolved. However, there has been a delay in recovering from the loss of consumer purchases due to the supply reduction earlier in the year. Core operating profit for the third quarter on...