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Presentation materials for financial results4911Shiseido Company,LimitedMaterials and Chemicals

Earnings Presentation Materials for the First Quarter of Fiscal 2026

In Q1 2026, revenue declined on a like-for-like basis, while core operating profit increased by ¥4.8 billion year on year, driven by the effects of structural reforms and company-wide cost controls. The full-year outlook was maintained, although the revenue growth forecast for Japan was revised downward and those for China and travel retail were revised upward.

Worth reading
58In focus
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
48
¥100 million (year-on-year change in core operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsQ1 20268 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales2,320 Hundreds of millions of yen
Operating profit123 Hundreds of millions of yen
Ordinary income133 Hundreds of millions of yen
Net income84 Hundreds of millions of yen
Selling, general and administrative expenses¥1,707 100 million; SG&A-to-revenue ratio: 73.6%
Gross Profit Margin78.4%, up 0.9 percentage points year on year
Operating profit margin5.3%; year-on-year change in percentage points: Not disclosed
Results for the three months of the current quarterQ1 2026 standalone results: revenue of ¥232.0 billion, core operating profit of ¥13.0 billion, operating profit of ¥12.3 billion, quarterly profit before tax of ¥13.3 billion, and quarterly profit of ¥8.4 billion
Full-year earnings forecastCore operating profit of ¥69.0 billion, operating profit of ¥59.0 billion, and non-recurring items of −¥10.0 billion. The full-year revenue forecast in monetary terms is Not disclosed
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
The structural reform initiatives are progressing as planned
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Cost reductions
    Q1 2026 benefits¥2 billion
    Expected full-year benefits¥7 billion
  • More efficient marketing investment
    Q1 2026 benefits¥500 million
    Expected full-year benefits¥1 billion
  • Reduction in personnel expenses
    Q1 2026 benefits¥2.5 billion
    Expected full-year benefits¥8 billion
  • Other expense reductions
    Q1 2026 benefits¥2.5 billion
    Expected full-year benefits¥9 billion
  • Total structural reform benefits
    Q1 2026 benefits¥7.5 billion
    Expected full-year benefitsMore than ¥25.0 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Q1 2026 actual exchange rates: US$1 = ¥156.8, €1 = ¥183.6, and CNY1 = ¥22.7
New initiatives
  • Decision to close the Hsinchu plant in Taiwan
  • Consolidation of production at domestic plants
  • Increased investment in key radiance care and other products in China and travel retail
  • Focused investment in key retailers in the Americas and expanded sales of new and hero products
Key KPIsA metric the company considers important as a management benchmark.
  • Japan Q1 customer purchases−mid-single digits%
  • Japan local Q1 customer purchases+low-single digits%
  • Asia Pacific Q1 customer purchases+high-single digits%
  • Europe Q1 customer purchases−low-single digits%
  • China prestige marketContinued recovery
Segment results
  • Japan
    Net Sales¥71.2 billion, down 3.6% year on year on a like-for-like basis
    Core operating profit¥10.4 billion, down 8.1% year on year
  • China and travel retail
    Net Sales¥78.3 billion, down 1.4% year on year on a like-for-like basis
    Core operating profit¥15.7 billion, up 18.0% year on year
  • Asia Pacific
    Net Sales¥18.0 billion, down 1.1% year on year on a like-for-like basis
    Core operating profit¥500 million
  • Americas
    Net Sales¥29.6 billion, up 5.1% year on year on a like-for-like basis
    Core operating profit¥300 million
  • Europe
    Net Sales¥32.5 billion, down 9.9% year on year on a like-for-like basis
    Core operating profit−¥1.6 billion
  • Other
    Net Sales¥2.3 billion, down 19.9% year on year on a like-for-like basis
    Core operating profit-¥0.7 billion
Medium-term management plan targets
The 2030 medium-term management strategy targets are referenced, but specific target figures are Not disclosed
Market Size / Share
Quantitative market size and market share are Not disclosed
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredQ1 2026
Net Sales2,320 Hundreds of millions of yen
Operating profit123 Hundreds of millions of yen
Ordinary income133 Hundreds of millions of yen
Net income84 Hundreds of millions of yen
Gross Profit Margin78.4%, up 0.9 percentage points year on year
Operating profit margin5.3%; year-on-year change in percentage points: Not disclosed
Selling, general and administrative expenses¥1,707 100 million; SG&A-to-revenue ratio: 73.6%
Results for the three months of the current quarterQ1 2026 standalone results: revenue of ¥232.0 billion, core operating profit of ¥13.0 billion, operating profit of ¥12.3 billion, quarterly profit before tax of ¥13.3 billion, and quarterly profit of ¥8.4 billion
Full-year earnings forecastCore operating profit of ¥69.0 billion, operating profit of ¥59.0 billion, and non-recurring items of −¥10.0 billion. The full-year revenue forecast in monetary terms is Not disclosed
Self-assessment against the planThe structural reform initiatives are progressing as planned
Segment resultsSegment Japan / Net Sales ¥71.2 billion, down 3.6% year on year on a like-for-like basis / Core operating profit ¥10.4 billion, down 8.1% year on year, Segment China and travel retail / Net Sales ¥78.3 billion, down 1.4% year on year on a like-for-like basis / Core operating profit ¥15.7 billion, up 18.0% year on year, Segment Asia Pacific / Net Sales ¥18.0 billion, down 1.1% year on year on a like-for-like basis / Core operating profit ¥500 million, Segment Americas / Net Sales ¥29.6 billion, up 5.1% year on year on a like-for-like basis / Core operating profit ¥300 million, Segment Europe / Net Sales ¥32.5 billion, down 9.9% year on year on a like-for-like basis / Core operating profit −¥1.6 billion, Segment Other / Net Sales ¥2.3 billion, down 19.9% year on year on a like-for-like basis / Core operating profit -¥0.7 billion
Breakdown of Factors Affecting the ChangeFactors Cost reductions / Q1 2026 benefits ¥2 billion / Expected full-year benefits ¥7 billion, Factors More efficient marketing investment / Q1 2026 benefits ¥500 million / Expected full-year benefits ¥1 billion, Factors Reduction in personnel expenses / Q1 2026 benefits ¥2.5 billion / Expected full-year benefits ¥8 billion, Factors Other expense reductions / Q1 2026 benefits ¥2.5 billion / Expected full-year benefits ¥9 billion, Factors Total structural reform benefits / Q1 2026 benefits ¥7.5 billion / Expected full-year benefits More than ¥25.0 billion
Key KPIsIndicator name Japan Q1 customer purchases / Value −mid-single digits%, Indicator name Japan local Q1 customer purchases / Value +low-single digits%, Indicator name Asia Pacific Q1 customer purchases / Value +high-single digits%, Indicator name Europe Q1 customer purchases / Value −low-single digits%, Indicator name China prestige market / Value Continued recovery
Assumptions Underlying the Business OutlookQ1 2026 actual exchange rates: US$1 = ¥156.8, €1 = ¥183.6, and CNY1 = ¥22.7
Medium-term management plan targetsThe 2030 medium-term management strategy targets are referenced, but specific target figures are Not disclosed
Market Size / ShareQuantitative market size and market share are Not disclosed
New initiativesDecision to close the Hsinchu plant in Taiwan, Consolidation of production at domestic plants, Increased investment in key radiance care and other products in China and travel retail, Focused investment in key retailers in the Americas and expanded sales of new and hero products
Items this document does not state (12)
Progress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Revenue declined due to shipment timing differences for certain brands and inventory optimization. On the profit side, the effects of structural reforms, primarily in the Americas, an improved brand and SKU mix, lower provisions for the write-down of excess inventory, and company-wide cost management contributed to results.

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Earnings Presentation Materials for the First Quarter of Fiscal 2026 | Shiseido Company,Limited (4911) timely disclosure | Komori