Interim Performance and Outlook


In the period under review, the Company began presenting consolidated statements to improve its information disclosure.

During the term, the Company's domestic subsidiaries achieved steady sales growth. These included Shiseido Sales Co., Ltd., Shiseido Cosmenity Co., Ltd., Shiseido Fine Toiletry Co., Ltd., and subsidiaries selling non-Shiseido brand products. Overseas, Beauté Prestige International S.A. recorded stable growth. Also contributing to Shiseido's performance were the North American Professional (Hair Salon) Division of Helen Curtis Inc., which the Company acquired in December 1996, and Taiwan Shiseido Co., Ltd., which became a consolidated subsidiary from the period under review. As a result, overseas sales soared 35%. Net sales therefore climbed 9.6%, to Yen310,470 million.
Efforts to bolster productivity and streamline advertising and sales promotion expenses helped increase income from operations 15.6%, to Yen20,179 million. Ordinary income was up 9.3%, to Yen21,948 million. Net income was Yen9,408 million. Consolidated net income was 1.1-fold the nonconsolidated amount.
On a nonconsolidated basis, net sales advanced 6.0%, to a record Yen205,937 million. Income from operations rose 6.9%, to 13,570 million, also a new record. Ordinary income was up 5.1%, to Yen16,906 million. Net income improved 6.1%, to Yen8,506 million.

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