Shiseido Co. reported a ¥10.8 billion ($71.5 million) loss for 2024 as the Japanese cosmetics maker absorbed heavy restructuring costs and struggled with weakness in China and travel retail segments.
Net sales fell 1% to ¥990.6 billion during the period, while operating profit dropped 73% to ¥7.6 billion. The company took ¥28.8 billion in one-time charges related to structural reforms, primarily in Japan and China operations. A ¥12.8 billion provision was also recognized for a seller note from previous brand divestitures.
The company slashed its year-end dividend to ¥10 per share from ¥30 and reduced the annual payout to ¥40 from ¥60, citing the need to prioritize investments in growth initiatives.
While Japan and EMEA markets showed resilience with sales growing 10% and 8% respectively, China revenue declined 5% amid continuing consumer weakness. The company’s Drunk Elephant brand in Americas saw sharp declines, though other premium offerings like NARS and Clé de Peau Beauté gained momentum.
Looking ahead, Shiseido forecasts core operating profit to remain flat at ¥36.5 billion in 2025, targeting a 7% operating margin by 2026 through cost reforms and focusing on premium brands. The company plans to invest an additional ¥10 billion in marketing its core brands while reducing fixed costs.
