Shiseido Company (4911) Q1 2025 earnings summary

Executive summary

• Q1 2025 core operating profit met targets despite a 9% year-over-year net sales decline, reflecting progress on structural reforms and disciplined cost management.

• Net sales for Q1 2025 were ¥228.2 billion, down 8.5% year-over-year; core operating profit was ¥8.3 billion, down 27%.

• Profit attributable to owners turned positive at ¥3.7 billion, up ¥7.0 billion year-over-year, mainly due to lower non-recurring expenses.

• Comprehensive income fell to a loss of ¥16.9 billion, mainly from unfavorable FX translation due to yen appreciation.

• The company is executing its "Action Plan 2025-2026" to reinforce brand and operational foundations for sustainable profit growth.

Financial highlights

• EBITDA for Q1 2025 was ¥21.0 billion, with an EBITDA margin of 9.2%.

• Free cash flow was negative ¥12.4 billion, improved from -¥59.8 billion year-over-year.

• Basic earnings per share improved to ¥9.23 from a loss of ¥8.22 in Q1 2024.

• Total assets decreased to ¥1,280.3 billion; equity attributable to owners was ¥612.9 billion.

• Net debt-to-equity ratio stood at 0.23; cash and cash equivalents at period end were ¥84.2 billion.

Outlook and guidance

• FY2025 guidance maintained: net sales of ¥995.0 billion, core operating profit of ¥36.5 billion, and sales growth in all regions from Q2 onward.

• Japan expected to rebound with strong core brand growth; Americas and EMEA to recover from Q2.

• Monitoring tariff risks and global economic uncertainty, with countermeasures and cost management planned.