Tokyo-based Shiseido Co. Ltd. reported a record profit for the latest business year, at $208 million for the year ended in March, up from $194 million in the year-ago period. Company executives pointed to cost-cutting and strong overseas sales as positive contributors to the growth. “Sales growth and a sharp improvement in cost efficiency led to record earnings,” said Morio Ikeda, president, in a statement.
Revenues grew 5.3% to a record $5.2 billion. “Shiseido has finally become serious about cost-cutting after ignoring this over the decade,” said Risuo Watanabe, analyst, Mitsubishi Securities. “That’s a good sign for investors.” But “the company still needs to do a lot to boost market share as a way to raise profitability, especially in Japan,” Mr. Watanabe warned.