Pola Operating Income Soars 138% in 2023 Q1
- Chaileedo Press
- May 8, 2023
- 2 min read
POLA released its financial report for the first quarter of 2023. In Q1 of this year, the company's net sales were 42.136 billion yen ($312.11 million), up 11.9% year-on-year, with operating income of 4.549 billion yen ($33.7 million), up 137.9% compared to 2022 Q1.
Pola Orbis Holdings Inc (Pola), the Tokyo-based cosmetics producer, released its financial report for the first quarter of 2023. During the first three months of fiscal year 2023, Pola consolidated net sales increased by 11.9% year-on-year to 42.136 billion yen ($312.11 million), indicating a recovery from the disruption caused by the COVID-19 pandemic in Japan and overseas. This increase in sales led to a rise in gross profit, which resulted in a 137.9% year-on-year increase in operating income to 4.549 billion yen ($33.7 million).
While the ordinary income also increased by 16.7% year-on-year to 4,832 million yen ($35.79 million). However, profit attributable to owners of the parent decreased by 61.8% year-on-year to 2,743 million yen ($20.32 million), due to the combined effect of the above factors and a decrease in income taxes recorded in the previous year.
In terms of the segments performance, in the first quarter of this year, the net sales of the Beauty Care segment were 40.95 billion yen ($303.33 million), an increase of 12.1% year-on-year. The operating profit was 436 million yen ($3.23 million), up 115.1% year-on-year. The Beauty Care segment includes flagship brands POLA and ORBIS, overseas brand Jurlique, as well as THREE, DECENCIA.FIVEISMX THREE, and FUJIMI.
POLA pointed out that to boost the sales of aesthetic treatments domestically, the company utilized robust online advertising and social media presence, as well as new product offerings as incentives to attract customers to visit physical stores. Additionally, more offline events were actively promoted, which led to an increase in the number of new customers for the consignment sales channel.
ORBIS U and UV special care products saw an increase in sales, and the company successfully acquired new customers, resulting in a higher number of direct sales customers compared to the previous year. In addition, external sales channels grew significantly by more than 80% year-on-year, primarily driven by the expansion of e-commerce platforms.
In mainland China, retail sales increased year-on-year, despite being affected by COVID-19 in January. From February onwards, Jurlique strengthened its product offerings and cross-selling efforts, particularly with cosmetic oil, resulting in an increase in sales. In Australia and Hong Kong, revenue increased significantly with a gradual recovery in customer traffic, as well as stronger new product offerings and storefront initiatives.
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