This was compounded by the weakening sentiment towards China’s economy as well as consumer pull back on purchases of Japanese products after the release of a million tons of treated radioactive wastewater from the ruined Fukushima Daiichi nuclear power plant into the Pacific Ocean—a move which the Chinese government has been a vocal opponent of.
Shiseido expects the wastewater release to continue to impact its business into the first quarter of 2024.
The company now expects to achieve a core operating profit of ¥35 billion ($231.5 million) for the year ending 31 December 2023 – a 42% reduction from its previous estimate.
It has also cut its revenue forecast by 2% to ¥980 billion ($6.5 billion).
Net sales in the first nine months of fiscal year 2023 declined 5.3% year on year to ¥722.4 billion ($4.8 billion) on reported figures.
Sales in China and the travel retail market both fell around 10% in the third quarter.
More Shiseido News
Shiseido, in collaboration with its India distributor, Baccarose Perfumes & Beauty Products Pvt. Ltd., recently appointed Bollywood star Tamannaah Bhatia as its first-ever brand ambassador in India.