Adjuvant Holdings Co., Ltd. has released its earnings report for the first quarter of the fiscal year ending March 2024, showcasing a mixed performance. Despite a decline in sales, the company achieved an increase in profits due to strategic cost reductions and operational efficiencies.
In Q1 FY2024, Adjuvant Holdings reported a consolidated sales decreased by ¥11 million or 1.0% year-on-year. However, the company managed to increase its consolidated operating profit by ¥24 million compared to the same period last year. This was achieved through significant reductions in advertising and promotional expenses, coupled with gains from foreign exchange and increased dividend income.
The skincare segment showed a slight increase in sales, thanks to the introduction of the new brand ‘TOUQU to tone’. However, this growth was not sufficient to fully offset the decline in other product lines. Conversely, the haircare segment experienced a notable decrease in sales, primarily due to the lackluster performance of existing brands and the underperformance of new products such as the ‘muts hair touch’ styling line.
Looking ahead, Adjuvant Holdings maintains its full-year forecast, anticipating a 4.6% increase in sales and a significant boost in operating profit driven by continued cost control measures and the introduction of new products. The company remains committed to enhancing its unique business model, focusing on leveraging digital platforms and improving sales efficiency to achieve sustained growth.
Adjuvant Holdings’ strategic focus on integrating online tools and sales management platforms aims to drive future revenue growth and operational efficiency, setting a positive outlook for the upcoming quarters.
