The Japanese cosmetics group has been weighed down in 2023 by its problems in China. Shiseido has experienced an 8.8% drop in sales compared to last year and its sales have fallen by more than 6,000 million euros.
The company has seen the Chinese market in particular penalise the company's bottom line. In August, China boycotted Shiseido products because of the release of radioactive water from the Fukushima nuclear power plant into the sea. However, as the company explains, it expects to grow by 5% in 2024 and expects demand to fully recover in the second quarter of 2024.
Travel-on-retail continues to be one of Shiseido's strengths. In this area, the Japanese group posted sales of more than 820 million euros. In Europe, the Middle East and Africa, 726 million euros were generated.
The company's net profit fell to 34 million euros. Looking ahead to next year, Shiseido anticipates consolidated revenues of more than 6.21 billion euros, an improvement of 2.8% compared to this year.
Less than a week ago, Shiseido reported that it had completed the acquisition of DDG, owner of the cosmetics brand Dr. Dennis Gross, and at the end of 2023 it also announced the creation of an investment fund dedicated solely to cosmetics start-ups, following in the footsteps of another cosmetics giant: L'Oréal.