Expanding domestic cosmetics orders on the back of inbound and Asian demand

「Under these circumstances, domestic orders have recently shown signs of slowing because domestic cosmetics manufacturers have postponed new product launches and held back on placing orders in response to the heightened tensions in the Middle East, while some large orders from overseas cosmetics manufacturers have also been postponed. In Europe, however, orders for both pharmaceuticals and cosmetics have remained firm.」

「化粧品業界で、輸入増や一部新製品発売の先送りから国内化粧品メーカーの出荷伸び悩みが見られることが要因。」

「Shipments by domestic cosmetics manufacturers have been sluggish, partly because imports have increased and some new product launches have been postponed.」

「In Japan, the wave of new product orders, centered on makeup products following the end of the COVID-19 pandemic, subsided in the second half of the prior consolidated fiscal year, but demand has continued to recover and improve gradually.」

「Domestic and overseas cosmetics demand continued to recover following the end of the COVID-19 pandemic, and orders from domestic and overseas cosmetics manufacturers increased. In Japan, in particular, the Company benefited from waves of new product orders and secured large orders, resulting in net sales of ¥6,888 million, up 40.2% year on year.」

「Domestic personal consumption, particularly of makeup products, remains below pre-COVID-19 levels, but consumer sentiment appears to have improved significantly recently. New product launches, which had been weak during the COVID-19 pandemic, also recovered substantially and appear to have contributed to stimulating demand.」

「As the impact of COVID-19 diminished substantially, domestic and overseas cosmetics demand began to recover, and orders from domestic and overseas cosmetics manufacturers increased. As a result, net sales rose 17.5% year on year to ¥7,467 million.」

「Orders from domestic and overseas cosmetics manufacturers are recovering, but remain substantially below pre-COVID-19 levels, and the Company continues to be unable to fully utilize the production capacity created through capital investment, including the third-phase expansion at the Tsukuba Plant. Nevertheless, plant utilization has steadily improved as orders recovered recently, and despite the challenging environment, performance recovered, resulting in the first operating profit in 3 fiscal years.」

「In Japan, cosmetics demand remained significantly depressed, particularly for makeup products, partly due to routine mask-wearing, but consumer sentiment improved and some signs of recovery were observed.」

「In Japan, cosmetics demand remained significantly depressed, particularly for makeup products, partly due to routine mask-wearing, but consumer sentiment improved as opportunities to go out and dine out increased, and some signs of recovery were observed.」

「In Japan, cosmetics demand remained significantly depressed, particularly for makeup products, partly due to routine mask-wearing, but some signs of recovery were observed as opportunities to go out and dine out increased.」

「In Japan, personal consumption remained weak due to routine mask-wearing and consumers refraining from going out and dining out. Inbound demand also failed to recover as tighter entry restrictions remained in place, and cosmetics demand continued to be significantly depressed, particularly for makeup products.」

「In Japan, personal consumption remained weak as consumers refrained from going out and dining out and mask-wearing became routine. Inbound demand also failed to recover as tighter entry restrictions remained in place, and cosmetics demand continued to be significantly depressed, particularly for makeup products.」

「In addition, cosmetics demand has remained significantly depressed, particularly for makeup products, as inbound demand evaporated following a sharp decline in foreign visitors to Japan amid tighter entry restrictions.」

「(Japan) The rapid decline in domestic and overseas cosmetics demand caused by the spread of COVID-19 reduced orders from domestic and overseas cosmetics manufacturers, resulting in net sales of ¥6,842 million, down 31.3% from the prior consolidated fiscal year. In terms of earnings, in addition to the substantial decline in sales, higher expenses associated with completion of the third-phase expansion at the Tsukuba Plant and other factors resulted in an operating loss of ¥964 million, compared with operating profit of ¥303 million in the prior consolidated fiscal year.」

「As described above, the rapid decline in domestic and overseas cosmetics demand caused by the spread of COVID-19 reduced outsourcing orders from domestic and overseas cosmetics manufacturers, resulting in net sales of ¥5,403 million, down 28.1% year on year. In terms of earnings, in addition to the sharp decline in sales, higher expenses associated with completion of the third-phase expansion at the Tsukuba Plant and other factors resulted in an operating loss of ¥570 million.」

「As described above, the rapid decline in domestic and overseas cosmetics demand caused by the spread of COVID-19 reduced outsourcing orders from domestic and overseas cosmetics manufacturers, resulting in net sales of ¥3,737 million, down 24.8% year on year. In terms of earnings, in addition to the sharp decline in sales, higher expenses associated with completion of the third-phase expansion at the Tsukuba Plant and other factors resulted in an operating loss of ¥330 million.」

「The cosmetics industry was also significantly affected by the spread of COVID-19. From February onward, consumption began to be affected by shortened business hours and temporary closures at commercial facilities, along with consumers refraining from going out. Personal consumption declined sharply as many consumers refrained from nonessential outings, among other factors, and we expect weak consumption to continue for an extended period.」

「Through the nine months ended 31 December, outsourcing to the Company remained strong as domestic cosmetics manufacturers captured inbound and outbound demand and worked to secure stable product supply against a backdrop of strong popularity for “Made-in-Japan” products in Asia, particularly China, while overseas cosmetics manufacturers also sought to secure such products. However, sales began to slow in the fourth quarter due to inbound demand in Japan reaching a ceiling and the impact of COVID-19, among other factors, although full-year net sales rose 6.3% to ¥9,956 million.」

「Against a backdrop of strong popularity for “Made-in-Japan” products in Asia, particularly China, domestic cosmetics manufacturers were capturing inbound and outbound demand and working to secure stable product supply, while overseas cosmetics manufacturers were also seeking to secure “Made-in-Japan” products. Outsourcing to the Company consequently remained strong, resulting in net sales of ¥7,519 million, up 5.7% year on year. Operating profit fell 44.2% to ¥314 million, partly due to higher expenses associated with the start of production in certain processes following completion of the third-phase expansion at the Tsukuba Plant.」

「Against a backdrop of strong popularity for “Made-in-Japan” products in Asia, particularly China, domestic cosmetics manufacturers were capturing inbound and outbound demand and working to secure stable product supply, while overseas cosmetics manufacturers were also seeking to secure “Made-in-Japan” products. Outsourcing to the Company consequently remained strong, resulting in net sales of ¥4,970 million, up 7.4% year on year.」

「Against a backdrop of strong popularity for “Made-in-Japan” products in Asia, particularly China, domestic cosmetics manufacturers were capturing inbound and outbound demand and working to secure stable product supply, while overseas cosmetics manufacturers were also seeking to secure “Made-in-Japan” products. Outsourcing to the Company consequently remained strong, resulting in net sales of ¥2,478 million, up 12.6% year on year. Operating profit fell 28.2% to ¥129 million, partly due to higher upfront expenses to expand production after the third-phase expansion at the Tsukuba Plant.」

「Domestic cosmetics manufacturers captured inbound and outbound demand for “Made-in-Japan cosmetics,” which are highly popular in Asia and ASEAN. Outsourcing to the Company by major cosmetics manufacturers seeking to strengthen their systems for stable product supply also remained strong, resulting in net sales of ¥7,112 million, up 6.0% year on year. Operating profit rose 20.0% to ¥563 million, reflecting higher net sales.」

「Domestic cosmetics manufacturers captured inbound and outbound demand for “Made-in-Japan cosmetics,” which are highly popular in Asia and ASEAN. Outsourcing to the Company by major cosmetics manufacturers seeking to strengthen their systems for stable product supply also remained strong, resulting in net sales of ¥4,627 million, up 3.8% year on year. Operating profit rose 3.9% to ¥342 million, reflecting higher net sales and lower selling, general and administrative expenses.」

「Domestic cosmetics manufacturers continued to see rising inbound and outbound demand for “Made-in-Japan cosmetics,” which are highly popular in Asia and ASEAN. Outsourcing by major cosmetics manufacturers seeking to strengthen their systems for stable product supply also remained at a high level, resulting in net sales of ¥2,201 million, up 0.8% year on year. Operating profit rose 4.8% to ¥179 million, reflecting higher gross profit from increased net sales and lower selling, general and administrative expenses.」

「Outsourcing to the Company also increased among major domestic cosmetics manufacturers, which were moving quickly to strengthen their systems for stable product supply in response to the sharp increase in cosmetics demand in the market, and net sales remained above the prior-year level.」

「The domestic contract cosmetics manufacturing market remained solid, supported by expanding outsourcing by domestic cosmetics manufacturers and inbound and outbound demand for “Made-in-Japan cosmetics,” which are popular in Asia and ASEAN. Against a backdrop of makeup products driving current cosmetics market growth, we won orders from a broad range of customers, and net sales remained above the initial forecast. Operating profit also remained above the initial forecast, but declined year on year due to higher depreciation expenses following completion of the second-phase expansion at the Tsukuba Plant and increased external outsourcing amid tight labor supply and demand. As a result, for the nine months ended 31 December, net sales were ¥6,708 million, up 1.8% year on year, and operating profit was ¥469 million, down 26.7%.」

「Japan's contract cosmetics manufacturing market remained firm, supported by the expansion of outsourcing by domestic cosmetics manufacturers, new entrants from other industries into the cosmetics market, and inbound and outbound demand for Japanese-made cosmetics, which are popular in Asia and ASEAN. The market's growth being led by makeup products also provided a tailwind, enabling us to secure orders from a broad range of customers. As a result, revenue exceeded the initial plan, but declined 0.5% year on year to ¥4,456 million. Operating income also exceeded the initial plan, but declined 30.0% year on year to ¥329 million due mainly to higher depreciation and related expenses associated with Phase 2 expansion work at the Tsukuba Plant.」

「Although inbound demand from domestic customers and demand related to new products remained firm, and order levels remained high from the previous fiscal year,」

「Japan's contract cosmetics manufacturing market remained firm, supported by the expansion of outsourcing by domestic cosmetics manufacturers, new entrants from other industries into the cosmetics market, and inbound and outbound demand for Japanese-made cosmetics, which are popular in Asia and ASEAN. As a result, revenue for the current consolidated fiscal year was ¥8,406 million, up 18.5% from the previous fiscal year, and operating income was ¥674 million, up 56.5%.」

「Our cosmetics business performed steadily, supported by inbound demand from the increase in visitors to Japan, growing demand for Japanese-made cosmetics in the Asian and ASEAN markets, strong orders related to new products, and measures such as improved production efficiency. By product category, sales of eye shadow and blush products, foundation products, lipstick products, face powder and loose powder products, cream products and other items significantly exceeded the previous period, resulting in higher revenue and operating income year on year. As a result, revenue for the cumulative third quarter of the current consolidated fiscal year was ¥6,587 million, up 31.9% year on year, and operating income was ¥640 million, up 188.9%.」

「Against this business backdrop, orders in our cosmetics business increased significantly, driven by inbound demand and demand in the Asian and ASEAN markets. By product category, sales of eye shadow and blush products, foundation products, lipstick products, face powder and loose powder products, cream products and other items significantly exceeded the previous period, resulting in higher revenue and operating income year on year. As a result, revenue for the cumulative second quarter of the current consolidated fiscal year was ¥4,481 million, up 42.6% year on year, and operating income was ¥471 million, up 529.0%.」

「Orders in our cosmetics business increased substantially, supported by inbound demand from domestic customers and demand in the Asian and ASEAN markets. As a result, revenue for the cumulative first quarter period under review was ¥2,269 million, up 53.7% year on year, and operating profit was ¥250 million, up 707.4%.」