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Message from the President
Let me begin my message by expressing my deepest gratitude to all stakeholders who have been steadfast
in their support for Mandom Corporation.
In 2027, Mandom will celebrate the centennial of its founding. As declared in VISION 2027, our vision
for 2027 is to be a cosmetics company that can “use our ‘Only One’ strengths to provide Dedication to Service
(Oyakudachi) to a billion consumers around the world.” We have positioned our 14th Middle-Range Planning
(MP-14) period, which started at the beginning of this fiscal year, as a period for building a foundation for
growth. To make the period a turning point in our growth for another 100 years beyond 2027, we will promote
Group-wide management and strengthen our management foundation. The entire Group will take on many new
challenges while effectively leveraging available management resources, such as human resources, funds, and
brands, thereby creating both economic and social value.
In particular, this year marks the beginning of MP-14, a year in which we should take a strong new step
toward the Mandom Group of the future. I am determined to take the lead in implementing major reform. And with
the same determination, both the company and the employees of the Mandom Group will move forward with their
own transformation. We will break away from our past successes, and while valuing what should be valued, we
will change what needs to be changed and make the Mandom Group a place where challenges for change are being
taken on everywhere. In the fiscal year ending March 2028, the final year of MP-14, we aim to achieve net
sales of 100 billion yen and operating income of 9 billion yen, both of which will be record highs.
Financial results for the fiscal year ended March 2024
During the previous fiscal year (year ended March 2024), net sales were up 9.2% year on year to ¥73,233 million. This was mainly due to higher sales of women’s cosmetics and summer seasonal products in Japan, continued strong performance in the Overseas, Other segment, and the positive impact of foreign exchange rates. Operating income was ¥2,020 million (up 43.3% year on year). This was mainly due to an increase of approximately ¥900 million in the Overseas, Other segment, which performed well, reflecting the effect of higher sales. As a result, ordinary income and net income attributable to owners of parent were ¥2,981 million (up 35.1% year on year) and ¥2,601 million (up 171.4% year on year), respectively. The results of operations by segment (net sales represent sales to external customers) are as follows: Sales in Japan were ¥38,010 million (up 6.3% year on year). This was mainly due to strong sales of women’s cosmetics throughout the year and an increase in sales of summer seasonal products due to a longer period of warmer-than-normal temperatures, especially in the summer. In terms of profit, operating income was ¥79 million (down 71.7% year on year) due to additional investment in advertising expenses and the impact of soaring raw material prices. Sales in Indonesia were ¥14,708 million (up 3.7% year on year) . This was mainly attributable to an increase in the yen equivalent value of net sales due to the weaker yen, despite sluggish sales in Indonesia. In terms of profit, operating loss increased to ¥770 million (compared with an operating loss of ¥676 million in the previous year), due to a decrease in gross profit resulting from a higher cost-of-sales ratio. Sales for Overseas, Other increased to ¥20,513 million (up 20.0% year on year). This was mainly attributable to robust sales in Southeast Asian countries. In terms of profit, operating income was ¥2,710 million (up 50.3% year on year), mainly reflecting an increase in gross profit and the impact of exchange rates.
For the current fiscal year (ending March 2025), we will engage in fundamental structural reform to improve profitability in Japan, and will also promote structural reform to revitalize business in Indonesia. Due to the costs of these initiatives, we expect a significant decrease in operating income for the current fiscal year. However, the entire Group will work together to ensure that the results of these initiatives will be reflected in our business performance in the next fiscal year and beyond.
Finally, I would like to thank you all for your continued understanding and support.
June 2024
Ken Nishimura
Representative Director and President Executive Officer
