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Shiseido reports a 19% decrease in sales in 2020 and falls into a loss

Japanese cosmetics giant Shiseido It announced on Tuesday that its full-year sales were down 18.6%, but lost because the Covid-19 pandemic hit the company’s business, especially the domestic market.

China was the only market for Shiseido to grow sales in 2020-Instagram: @shiseido

The Cosmetology Group’s 2020 sales were 920.9 billion yen ($ 8.6 billion), down from 1.1 trillion yen in the previous year.

Sales in Japan, where recovery from the effects of the Covid-19 pandemic has been delayed, decreased by 29.7% to 303 billion yen. Shiseido is working to meet the changing consumer needs of the domestic market, such as MAQuillAGE, a mask-proof BB cream, Ihada’s medicated hand sanitizer, and Shiseido Ultimune Power Infusing Hand Cream.

Annual sales in the Americas fell 25.7% to 91.4 billion yen due to the effects of blockades, stay-at-home orders, and increased bankruptcy filings. E-commerce was a bright spot in the region, driven by the growth of Drunk Elephant, a prestige skincare brand acquired by Shiseido last year.

Sales in Europe, the Middle East and Africa (EMEA) were 94.3 billion yen, down 20.4%, and sales in the Asia Pacific region were 59.2 billion yen, down 15.3% year-on-year.

Shiseido grew only in China, with sales up 9.0% to 235.8 billion yen. Although it was difficult to start this year with the coronavirus, sales in the company’s market began to recover in late March, and with the impressive performance of China’s Singles’ Day, it recorded a particularly strong fourth quarter. did.

The company’s full-year net loss decreased from 73.6 billion yen in the previous year to 11.7 billion yen ($ 109.6 million).

Shiseido’s fourth-quarter sales were 267.2 billion yen, down 6.2% from 284.9 billion yen in the same period of the previous year. Net income increased from 1.1 billion yen in the same period of the previous year to 2 billion yen.

Shiseido expects to return to profitability in 2021, with annual sales expected to increase 19% from 2020 to 1.1 trillion yen and net income to increase 23.2% to 11.5 billion yen.

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Shiseido reports a 19% decrease in sales in 2020 and falls into a loss

Source link Shiseido reports a 19% decrease in sales in 2020 and falls into a loss

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