Shiseido Company (4911) Q2 2026 earnings summary

Executive summary

• Net sales for the first half of 2026 rose 6.2% year-over-year to ¥498.97 billion, with core operating profit up 90.1% to ¥44.43 billion and profit attributable to owners of parent up 211.4% to ¥29.70 billion, driven by structural reforms and cost management.

• Sales momentum improved in Q2, with organic growth rebounding from -3% in Q1 to +2% in Q2, supported by strong performance in core brands and most regions.

• Basic earnings per share increased to ¥74.32 from ¥23.87 year-over-year.

• Full-year outlook is maintained, with increased confidence in achieving or exceeding core operating profit targets, and strategic investments in marketing and innovation prioritized for the second half.

• Comprehensive income swung from a loss of ¥15.74 billion to a gain of ¥43.33 billion year-over-year.

Financial highlights

• Net sales increased 6% year-over-year to ¥499.0 billion, mainly due to a weaker yen; real-term growth was flat.

• Core operating profit margin reached 9%, surpassing the full-year target of 7%.

• EBITDA rose 44.2% to ¥70.02 billion; free cash flow increased to ¥22.5 billion (+29% YoY).

• Profit attributable to owners was ¥29.7 billion (+211% YoY); basic EPS for the six months was ¥74.32.

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

Outlook and guidance

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

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

• Aggressive marketing investments are planned for H2 to support new product launches and growth opportunities.