Shiseido Company, Limited, The Current Fiscal Year Net Income Revised Downward to an Unexpected 72% Decrease

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Thu Nov 7, 2024 3:30 pm JST Earnings

4911 Shiseido Company, Limited 【IFRS】

Earnings Report

Shiseido Company, Limited <4911> [TSE-P] announced its financial results (based on IFRS) after the market closed on November 7th (15:30). The consolidated net income for the cumulative third quarter of the fiscal year ending December 2024 (January to September) significantly dropped by 96.3% from the same period last year to 754 million yen.

In addition, the full-year consolidated net income has downwardly by 72.7%, from the previous forecast of 22 billion yen to 6 billion yen (compared to 21.7 billion yen in the previous period). This changes the outlook from an anticipated profit increase to a projection of a 72.4% decrease in profit.

Based on the full-year plan announced by the company after the downward revision, our estimate of the consolidated net income for the July to December period (second half) has downwardly by 72.8%, from the previous forecast of 21.9 billion yen to 5.98 billion yen (compared to 9.99 billion yen in the same period of the previous year). This changes the outlook from an anticipated profit increase to a projection of a 40.1% decrease in profit.

In the most recent three-month period, from July to September (3Q), the consolidated net income significantly dropped to 739 million yen, a 91.6% decrease compared to the same period last year. The operating profit margin drastically worsened from 5.3% in the same period last year to 2.3%.

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Actual Results

Accumulated Results 3rd Quarter

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Progress Rate vs. First Half	Announce	Accounting Standards
Jan - Sep, 2022	762,743	35,660	43,585	29,046	72.7	86.4	Nov 10, 2022	IFRS
Jan - Sep, 2023	722,417	25,826	28,721	20,517	51.3	92.5	Nov 10, 2023	IFRS
Jan - Sep, 2024	722,754	2,183	7,152	754	1.9	65.0	Nov 7, 2024	IFRS
YoY	+0.0%	-91.5%	-75.1%	-96.3%	-96.3%

Guidance Update

Second Half Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Jul - Dec, 2024 Prev	491,464	ー	28,293	21,985	55.0	30	Aug 7, 2024	IFRS
Jul - Dec, 2024 New	481,464	7,728	6,793	5,985	15.0	30	Nov 7, 2024	IFRS
Revision Rate	-2.0%	－	-76.0%	-72.8%	-72.8%

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Dec, 2024 Prev	1,000,000	ー	32,500	22,000	55.1	60	Feb 9, 2024	IFRS
Dec, 2024 New	990,000	5,000	11,000	6,000	15.0	60	Nov 7, 2024	IFRS
Revision Rate	-1.0%	－	-66.2%	-72.7%	-72.7%

Current Period Guidance

Second Half Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Jul - Dec, 2023	478,849	14,501	15,646	9,996	25.0	30	Feb 9, 2024	IFRS
Jul - Dec, 2024 Guidance	481,464	7,728	6,793	5,985	15.0	30	Nov 7, 2024	IFRS
YoY	+0.5%	-46.7%	-56.6%	-40.1%	-40.1%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Dec, 2022	1,067,355	46,572	50,428	34,202	85.6	100	Feb 10, 2023	IFRS
Dec, 2023	973,038	28,133	31,037	21,749	54.4	60	Feb 9, 2024	IFRS
Dec, 2024 Guidance	990,000	5,000	11,000	6,000	15.0	60	Nov 7, 2024	IFRS
YoY	+1.7%	-82.2%	-64.6%	-72.4%	-72.4%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	228,228	12,194	13,330	8,764	21.9	5.3	Nov 10, 2023	IFRS
Oct - Dec, 2023	250,621	2,307	2,316	1,232	3.1	0.9	Feb 9, 2024	IFRS
Jan - Mar, 2024	249,453	-8,745	-3,827	-3,286	-8.2	-3.5	May 10, 2024	IFRS
Apr - Jun, 2024	259,083	6,017	8,034	3,301	8.8	2.3	Aug 7, 2024	IFRS
Jul - Sep, 2024	214,218	4,911	2,945	739	1.9	2.3	Nov 7, 2024	IFRS
YoY	-6.1%	-59.7%	-77.9%	-91.6%	-91.6%