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Shiseido Q3 profit plunges 60% as China sales dip

Shiseido has released its latest financial results, reporting an 8% drop in third-quarter revenue to 214.2 billion Japanese yen ($1.4 billion), below analysts’ expectations of 238.2 billion Japanese yen ($1.6 billion). Operating profit plunged 60% to 4.9 billion yen ($32.6 million), while EBITDA remained flat at 21.9 billion yen ($146 million) compared to the previous year. By region, revenue in Japan increased by 5%, but revenue in China dropped by 13%, in the US declined by 9%, in the EMEA region fell by 7%, and travel retail saw a sharp 38% decrease. Based on the performance in the first three quarters, Shiseido has revised its full-year guidance, forecasting revenue below its previous estimate, with operating profit expected to reach 34.7 billion yen ($230 million), down from the previous forecast of 54.6 billion yen ($364 million). As of the time of publication, Shiseido's stock price had fallen 7% to 2,959 yen ($19.6), marking the lowest level of the year, with a current market capitalization of 1 trillion yen ($6.6 billion).

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