THE WHAT? Pola Orbis reported a 1.3% increase in net sales for fiscal 2021 to ¥178,642.
THE DETAILS Operating profit rose 22.8% to 16,888 yen from 13,752 yen in fiscal 2020 as shareholders saw a return on equity of 6.9% from 2.6% in 2020.
Looking at each category. Beauty Care’s operating income rose 1.5% to 174,150 yen.
According to a press release, “Pola seeks to further enhance its brand value and establish its customer base in the medium to long term, striving to launch highly functional products primarily in the area of anti-aging and skin lightening, and to focus on the growing markets of China and travel retail.
“In the domestic market, POLA has been working to strengthen online consulting in the rapidly growing e-commerce industry to improve communication during the COVID-19 pandemic.”
THE WHY ? Pola focused heavily on the pandemic when reviewing its financial results, saying: “During the fiscal year ended December 31, 2021 (January 1 to December 31, 2021), the Japanese economy suffered inevitable restrictions on economic activities. This was due to the spread and proliferation of COVID-19 (the novel coronavirus), which led to declarations of states of emergency and the application of near-emergency measures.
The company pointed out that consumption has declined in the domestic cosmetics market due to the collapse in inbound demand as a result of COVID-19.
Pola said, “In the overseas cosmetics market, there was a general trend of recovery from the decline caused by COVID-19, with variations in each country or region.”
However, he noted that from the end of 2021 until now, new virus cases have increased rapidly, so the situation has become more serious.
“In this market environment, the POLA ORBIS group has strived to achieve the key objectives: ‘development of domestic direct sales’, ‘profitable growth of overseas activities’, ‘contribution to the profits of developing brands’ , “strengthening operations” and “expanding new brands and areas of ‘beauty’.