Shiseido Co Ltd Ord (SSDOF) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

I will now explain our 2026-5 financial result. First on page 3, I will explain the key points of our 2025 financial results and 2026 outlook throughout this past year. Our business has focused on improving both our revenue structure and capital discipline, establishing solid financial foundation capable of consistently generating profits. The numerous initiatives we have implemented are now yielding results. While we remain on an improvement trajectory, tangible changes in the quality of our business are evident. Crucially, these improvements extend beyond cost reductions and are beginning to enhance capital efficiency. We will continue our management efforts to achieve both sustainable growth and improved capital efficiency. For FY 2025, core operating profit reached 44.5 billion with a core operating margin of 4.6%. Despite a revenue decline environment, the results exceeded the initial plan of 36.5 billion yen due to the steady execution structure reforms and cost management. This marks the first time in our four years that we have met our initial plan. We recognize this as a step forward in terms of strengthening financial discipline and improving the stability of our performance. Free cash flow also improved significantly to 66.5 billion yen driven by the improvements in working capital and the review of capital expenditures. Sales momentum recovered in the second half and the full year results were largely in line with expectations. Our focus brand led overall growth with a plus 4% real growth rate in the second half. Market share expansion is progressing in Japan local, China, and Asia Pacific. While America's business faced challenges in the fourth quarter, the China and travel retail business These are showing steady recovery trends for FY2026. We target ou...