Shiseido Full-Year Net Profit Grows 9%

Shiseido Full-Year Net Profit Grows 9% Kelly Wetherille TOKYO—Shiseido said Thursday that full-year net profit grew 9 percent, due largely to extraordinary gains. The Japanese beauty giant booked gains off the sale of intellectual property rights in connection with the Jean Paul Gaultier fragrance business and the sale of land at the site of a former factory. For the 12 months ended Dec. 31, Japan's largest cosmetics company recorded net income of 32.1 billion yen, or $296.0 million at average exchange rates for the period. The company's operating income fell by 17 percent to 36.8 billion yen, or $339.1 million. Shiseido said the downturn was mainly due to "one-time costs incurred following the acquisition of new brands and execution of license agreements, structural reform costs associated with Bare Escentuals, Inc. in the U.S. and the greater than expected impact of the strong yen." In July of last year, the company acquired the prestige brands Laura Mercier and RéVive. Shiseido saw its full-year net sales decline by 1.5 percent to 850.3 billion yen, or $7.84 billion. Like operating profit, sales were negatively impacted by the strong yen. On a local currency basis, net sales would have grown by 5.2 percent, the company said. From 2015 Shiseido changed its fiscal year to end Dec. 31 Follow WWD on Twitter or become a fan on Facebook. Read More... Fashion 3