MARUBI's Net Profit Falls by 46.61%, the Lowest in Five Years
- Chaileedo Press
- May 5, 2022
- 3 min read
The Chinese cosmetics company MARUBI CO., LTD. achieved an operating income of $270 million in 2021, a year-on-year increase of 2.41%, with $38 million in net profit attributable to shareholders of listed companies, a year-on-year decrease of 46.61%. It owns brands such as MARUBI, HARUKI, and PASSIONAL LOVER.
With the completion of the 2021 annual report and the first quarter financial report of 2022 by Chinese listed cosmetics companies, the performance of beauty companies once again reflects the potential of China's cosmetics consumption. In 2021, BTN and PROYA, the leaders of China's cosmetics industry, continued their high-speed growth in both revenue sales and net profit. Shanghai Jahwa, which was undergoing channel adjustment before, recorded growth in the three indicators of revenue sales, net profit and non-net profit, especially the non-net profit recorded the highest growth in six years.
However, when the sales revenue and net profit of these listed Chinese cosmetic companies have increased, MARUBI has become an exception, with the company's net profit experiencing a double-digit decline.
On April 30, Beijing time, Chinese cosmetics company MARUBI announced its 2021 annual report and its first quarter 2022 financial report. In 2021, MARUBI achieved an operating income of $270 million, a year-on-year increase of 2.41%, with the net profit attributable to shareholders of listed companies being $38 million, a year-on-year decrease of 46.61%, and the net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses being $27 million, a year-on-year decrease of 55.70%.
In the first quarter of 2022, MARUBI's revenue and profit declined, with an operating income of $58 million, a year-on-year decrease of 5.31%, with the net profit attributable to shareholders of the listed company being over $9.91 million, a year-on-year decrease of 34.61%.
MARUBI CO., LTD. is a Chinese cosmetics company specializing in eye care. It owns brands such as MARUBI, HARUKI and PASSIONAL LOVER. In 2021, MARUBI, the main brand of MARUBI CO., LTD. achieved an operating income of $241 million, accounting for 92.36%, down 3.82% year-on-year, and the PASSIONAL LOVER achieved sales revenue of more than $10.01 million.
In 2021, MARUBI reached $156 million in the online sales revenue, accounting for 59.54%, an increase of 8.17% year-on-year, mainly due to the push of Chinese short video platforms TikTok and Kwai live streaming. However, due to the fierce competition from other e-commerce platforms in China and the increase in marketing expenses, MARUBI still increased its sales revenue but not its profits. Its offline revenue was $106 million, accounting for 40.46%, a year-on-year decrease of 11.99%, because the recovery of MARUBI's daily chemical franchise store channel has not met expectations.
It is worth mentioning that in terms of the net profit margin, MARUBI has always been a leader in Chinese cosmetics companies, but in 2021, MARUBI's net profit dropped by 46.61% year-on-year, and the non-net profit dropped by 55.70% year-on-year.
So, MARUBI has maintained a leading position in the net profit among Chinese cosmetics companies all year round. Why did it drop so much in 2021?
First of all, both sales expenses and administrative expenses have increased. Sales expenses increased by 31.41% year-on-year, mainly due to the increase in advertising, and advertising expenditures increased by $18 million over the same period last year. Administrative expenses increased by 27.68% year-on-year, mainly due to the company's business development and the increase of staff in functional departments, which led to an increase in employee compensation and office expenses.
Secondly, the sales volume of MARUBI's daily chemical products was 34,018,200, a decrease of 4.93% over the previous year and the volume of the inventory was 5,251,900, an increase of 22.2% over the previous year. The decline in product sales and the increase in inventory all indicate that MARUBI is encountering sales bottlenecks.
At the same time, the financial report for the first quarter of 2022 disclosed by MARUBI together with the annual report shows that the net profit of MARUBI is also falling sharply.
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