Shiseido Company (4911) investor relations material

Executive summary

• Growth momentum accelerated in Q2 2026, with profit growth strengthening and investments increasing to fuel 2H and future growth.

• Net sales for the six months ended June 30, 2026, were ¥499.0 bn, flat YoY on a like-for-like basis, with Q2 returning to growth (+2%).

• Core operating profit rose to ¥44.4 bn, up 90.1% YoY, driven by structural reforms and disciplined cost management.

• Profit attributable to owners of parent increased 211.4% YoY to ¥29.7 bn.

• Basic earnings per share increased to ¥74.32 from ¥23.87 YoY.

Financial highlights

• Net sales for 1H 2026: ¥499.0 bn (flat YoY LfL); Q1: -3%, Q2: +2%.

• Core operating profit: ¥44.4 bn (+90% YoY); operating profit: ¥41.9 bn (+132% YoY).

• EBITDA: ¥70.0 bn (+44% YoY); free cash flow: ¥22.5 bn (+29% YoY).

• Gross profit increased to ¥392.89 bn from ¥363.22 bn YoY.

• Cash and cash equivalents at period end were ¥105.67 bn, up from ¥91.84 bn at the start of the year.

Outlook and guidance

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

• Dividend forecast for FY2026 raised to ¥60 per share.

• Increased 2H investments to accelerate top-line growth, targeting core operating profit above plan.

• Monitoring downside sales risks in EMEA and Americas, and continued uncertainty in China and Travel Retail.