Shiseido Raises Full-Year Forecast on Yen Boost, Cost Control

Shiseido raised its full-year earnings forecast, projecting core operating profit of ¥870 billion, a significant increase from its prior guidance, driven by favorable currency exchange rates and effective cost management. The revision comes despite acknowledging weakening sales momentum in key regions.

The company now anticipates a net profit of ¥620 billion for the year ending December 2026, also exceeding previous expectations. This upward revision is supported by the acceleration of its asset-light strategies and a boost from one-time gains such as asset sales. While the company lowered its real terms sales growth forecast—accounting for currency fluctuations and business transfers—the impact was offset by the favorable exchange rate environment, leading to an overall increase in projected revenue.

The revised forecast reflects Shiseido’s ongoing efforts to strengthen its profitability and cash flow. Management highlighted the positive effects of comprehensive cost control measures and a focus on return on invested capital (ROIC). The company intends to continue prioritizing financial discipline and investing in growth initiatives while maintaining its planned annual dividend of ¥60 per share.

The company attributes the increased profitability in part to the benefits of structural reforms and rigorous cost management. However, the outlook acknowledges continued challenges in certain markets, particularly in North America, while highlighting the positive impact of currency fluctuations and a one-time gain from tariff refunds. The company’s strategy remains focused on accelerating sales growth and improving long-term profitability, building on a strengthened management foundation and governance structure.