On Friday, Japanese cosmetics maker Shiseido slightly raised its annual sales forecast slightly after having reduced it three months ago, but its net profit estimate has not been altered despite exceptional gains.

Sales for its 2014/15 financial year are now expected at 775 billion yen instead of 770 billion, an increase of 1.7% as compared to the previous year, aided by positive results experienced at the end of its first three quarters. 

Nevertheless, Shiseido is still counting on an annual net profit of 30 billion yen, up 14.7%. 

Between April 1 and December 31, 2014, the makeup and beauty cream specialist recorded a net profit of 27.8 billion yen, a 66% increase as compared to one year ago thanks to a non-recurring gain resulting from the sale of the Delco and Carita brands to French group L'Oreal.

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But at the same time, its operating profit fell by 44% to 18.8 billion yen due to bonuses paid to its staff in Japan, larger marketing costs abroad, returned products in Greece, and logisticas problems in the United States. 

At the same time, its turnover rose by 3.8% to 555.8 billion yen. 

Shiseido’s sales in Japan, where the group generates almost half of its revenue, declined by 2.3% to 245.4 billion yen due to a backlash following a rise in consumption taxes (from 5 to 8% on April 1). 

Conversely, its revenues outside the country increased by 2.3% (calculated in local currencies), despite the shortfall of the product lines sold to L'Oréal, thanks to online sales in China and the solid performance of the bareMinerals and Shiseido brands in Europe. Taking into account currency fluctuations, Shiseido’s sales outside Japan were up 9.3%.

1 yen = $0.16/£0.11