Net sales grew 8.8% year on year on a local currency basis, driven by the prestige category which we continued to bolster strategic investments. On a yen basis, sales increased 8.9% year on year. In addition, net sales were up 14% year on year on an organic, local currency basis that excludes the impact of the business transfer carried out last year.
Operating profit rose 34.7% year on year, due mainly to an increase in operating margin accompanying the growth in sales as well as the cost structure improvements that followed the strong performance of highly profitable prestige brands.
Accompanying the progress toward an ideal cost structure, the operating margin increased 1.9 percentage points year on year.
Following improvement in profitability, ROIC and ROE came to 13.1% and 14.1%, respectively, reaching the Company’s 2020 targets two years ahead of schedule.