Financial Summary for the Fiscal Year Ending December 2025 [IFRS] (Consolidated)

Performance Overview

Consolidated net sales for the fiscal year ending December 2025 were JPY 969,992 million (down 2.1% YoY), impacted by lower sales in China and Travel Retail as well as the Americas segment. Core operating income increased by 22.4% YoY to JPY 44,520 million; however, due to a goodwill impairment loss of JPY 46.8 billion caused by declining profitability in the Americas segment, operating income was a loss of JPY 28,788 million and net loss attributable to owners of the parent was JPY 40,680 million. By segment, the Japan business performed well with net sales of JPY 295.3 billion (up 0.4% YoY) and core operating income of JPY 39.0 billion (up 50.6% YoY), whereas the China & Travel Retail business recorded net sales of JPY 342.2 billion (down 4.3% YoY) and core operating income of JPY 64.5 billion (down 10.4% YoY). The Americas segment struggled with net sales of JPY 106.6 billion (down 10.1% YoY) and a core operating loss of JPY 11.6 billion.

Outlook and Dividend Policy

For the fiscal year ending December 2026, net sales are forecast at JPY 990 billion (up 2.1% YoY), core operating income at JPY 69 billion (up 55.0% YoY), and net income attributable to owners of the parent at JPY 42 billion. Regionally, efforts will focus on returning the Americas segment to profitability by strengthening investments in core brands. Dividends are planned at 40 JPY annually for the fiscal year ending December 2025 and 60 JPY annually (interim and year-end dividends of 30 JPY each) for the fiscal year ending December 2026, with a projected DOE of 3.9%. Shiseido's fundamental policy is to balance sustainable growth with shareholder returns while striving to improve capital efficiency.