Shiseido announced its 2024 financial results on February 10, reporting a 73.1% drop in operating profit to ¥7.58 billion (NT$1.6 billion), a sharp decline from ¥28.13 billion the previous year. The company attributed the decline to weak demand in China, which affected overall performance. CEO Kentaro Fujiwara acknowledged the challenging market conditions and emphasized efforts to rebuild the brand.
Shiseido recorded its first net loss in four years, with total sales reaching ¥990.5 billion (NT$213.2 billion), a slight 1.8% increase from 2023. However, a net loss of ¥10.8 billion (NT$2.3 billion) replaced last year’s ¥21.7 billion profit, partly due to a ¥12.8 billion loss from selling three beauty brands.
China’s sales fell 4.6% to ¥249.9 billion (NT$53.9 billion), making up 25% of Shiseido’s total revenue. Key factors include China’s slowing economy, declining consumer confidence, and lower spending on luxury goods. Additionally, duty-free sales, especially in Hainan, dropped over 30%, while online sales in China decreased 20%.
In contrast, Japan’s domestic sales rose 9.2% to ¥283.8 billion (NT$61.3 billion), boosted by foreign tourists taking advantage of the weak yen.