Shiseido’s Growth Strategy
Consolidated net sales grew steadily, up 3.4% year on year (or 6.8% like-for-like), driven predominantly by prestige brands, in which the Company continued to step up investments.
Although the Company increased investments in marketing, R&I, and human resources, consolidated operating profit rose 5.1% due to higher margins accompanying growth in sales.
The consolidated operating margin reached double digits for the first time ever, standing at 10.1%, allowing the Company to achieve its original target of 10% under the medium-to-long-term strategy VISION 2020 one year ahead of schedule.
Although ROIC weakened slightly due to an increase in interest-bearing debt that accompanied business acquisitions, ROE came to 15.6%, reflecting an improvement in capital efficiency. As a result, the Company achieved its original VISON 2020 target ahead of schedule for two consecutive years.