Shiseido Reports Q1 2025 Earnings Amid Global Challenges

Shiseido Company, Limited Sponsored Adr ( (SSDOY) ) has released its Q1 earnings. Here is a breakdown of the information Shiseido Company, Limited Sponsored Adr presented to its investors.

Shiseido Company, Limited, a leading player in the cosmetics industry, is renowned for its innovative beauty solutions and commitment to sustainability. The company’s latest earnings report for the first quarter of 2025 reveals a challenging period, with net sales declining by 8.5% year-on-year to ¥228.2 billion. Despite the decrease in sales, Shiseido managed to turn a profit attributable to owners of the parent, reporting ¥3.7 billion, a significant improvement from the loss recorded in the same period last year.

The company’s core operating profit fell by 27.2% to ¥8.3 billion, primarily due to declining sales in key markets such as China and the Americas. The Japan Business, however, showed resilience with a notable increase in core operating profit, driven by structural reforms and cost management efforts. The China & Travel Retail Business faced challenges with reduced consumer spending, while the Americas Business struggled with declining sales of the Drunk Elephant brand.

Shiseido’s strategic initiatives, including the ‘Action Plan 2025-2026,’ aim to reinforce brand foundations and enhance operational governance to achieve sustainable profit growth. The company’s focus on structural reforms and cost reductions is evident in its efforts to optimize organizational structures and maximize gross profit.

Looking ahead, Shiseido remains committed to its medium-term strategy, ‘SHIFT 2025 and Beyond,’ and aims to achieve a core operating profit margin of 7% by 2026. Despite uncertainties in the global economy, the company plans to leverage its key brands and products while reinforcing global cost management efforts to drive growth.