Shiseido Company (4911) investor relations material

Executive summary

• Q1 2026 core operating profit rose to ¥13.03 bn, up 57.9% YoY, with profit attributable to owners of parent up 127.1% to ¥8.37 bn, despite mixed sales trends, driven by structural reforms and disciplined cost management.

• EBITDA increased 21.9% YoY to ¥25.54 bn, and basic EPS more than doubled to ¥20.95.

• Comprehensive income swung to ¥13.76 bn from a loss of ¥16.87 bn in Q1 2025.

• Full-year forecast remains unchanged, with agile actions planned to address ongoing geopolitical risks and market volatility.

• Transformation efforts under the 2030 Medium-Term Strategy are accelerating to enhance resilience and adaptability.

Financial highlights

• Net sales: ¥232.0 bn, down 3% YoY LfL; core operating profit: ¥13.03 bn, up 57.9% YoY; operating profit: ¥12.33 bn, up 71.2% YoY.

• EBITDA increased 21.9% YoY to ¥25.54 bn; profit attributable to owners of parent rose 127.1% YoY to ¥8.37 bn.

• Free cash flow improved to -¥7.1 bn from -¥12.4 bn YoY.

• Gross profit margin improved to 78.4% from 77.6% YoY; gross profit reached ¥181.86 bn.

• Cash and cash equivalents at period end were stable at ¥91.8 bn; net debt-to-equity ratio stood at 0.19.

Outlook and guidance

• Full-year 2026 forecast unchanged: net sales ¥990 bn (+2.1% YoY), core operating profit ¥69 bn (+55.0%), profit attributable to owners of parent ¥42 bn, and basic EPS ¥105.12.

• Dividend forecast for FY2026 is ¥60 per share.

• Net sales forecast for Japan revised down due to prolonged inbound weakness, while China & Travel Retail revised up on Q1 upside.

• Company expects to deliver over ¥25.0 bn in cost savings for FY2026 through ongoing structural reforms.

• Monitoring Middle East tensions and raw material/logistics cost pressures; mitigation actions in place.