Shiseido Company (4911) investor relations material

Executive summary

• Achieved FY 2025 core operating profit of ¥44.5 billion (4.6% margin), exceeding initial targets despite a 2.1% sales decline, driven by structural reforms and cost management.

• Free cash flow improved to ¥66.5 billion, supported by working capital optimization and disciplined capital expenditures.

• Key brands delivered 4% like-for-like net sales growth in H2 2025, with market share gains in Japan, China, and Asia-Pacific.

• Americas business faced challenges, with a ¥46.8 billion goodwill impairment and core operating loss, while China and Travel Retail showed recovery momentum.

• Launched “Action Plan 2025-2026” and a 2030 Medium-Term Strategy targeting a core operating profit margin of 10% or more by 2030.

Financial highlights

• FY 2025 net sales were ¥970.0 billion, down 2.1% year-over-year; core operating profit rose 22.4% to ¥44.5 billion.

• EBITDA increased to ¥95.2 billion (+6% year-over-year); free cash flow improved by ¥101.8 billion from 2024.

• Non-recurring items included ¥73.3 billion in structural reform expenses and a ¥46.8 billion goodwill impairment in Americas.

• COGS improved by 0.6 points to 23.3%; marketing investment ratio increased to 29.3%.

• Basic loss per share was ¥101.83; loss attributable to owners widened to ¥40.7 billion.

Outlook and guidance

• FY 2026 targets: net sales ¥990.0 billion (+2.1%), core operating profit ¥69.0 billion (7% margin), ROIC 5%, ROE 7%, free cash flow ¥50.0 billion.

• Annual dividend planned to increase to ¥60 per share (from ¥40 in 2025), with DOE of 3.9%.

• ¥10 billion in structure reform expenses planned for FY 2026, including production and office optimization.

• Strategic price revisions, wage increases, and new product launches factored into FY 2026 guidance.

• Profit attributable to owners forecast at ¥42.0 billion; basic EPS forecast at ¥105.12.