POLA ORBIS Holdings Co., Ltd. released its consolidated financial results for the third quarter of the fiscal year ending September 30, 2023. The company reported a 5.9% year-on-year increase in sales, reaching 126.739 billion yen ($842.9 million). Operating income saw significant growth, rising by 55.4% year-on-year to 11.913 billion yen ($79.2 million).
In the beauty care business, which serves as the company’s mainstay, sales reached 123.26 billion yen ($819.8 million), reflecting a 6.0% year-on-year increase. Operating income in this segment also experienced substantial growth, rising by 40.7% year-on-year to 11.707 billion yen ($77.9 million).
Its brand POLA achieved net sales of 72.86 billion yen ($484.6 million), up 4.9% year on year. Within the domestic business of the POLA brand, efforts were made to establish a high Lifetime Value (LTV) business by leveraging the strengths of various sales channels through the promotion of OMO (Online Merges with Offline). As for the overseas business, while revenue in mainland China demonstrated growth, it was somewhat impacted by the release of treated water.
On the other hand, the Jurlique brand achieved net sales of 5.88 billion yen ($39.1 million), up 9.2% year on year. The brand experienced revenue growth of 9% due to the successful storefront approach in Australia and expansion in mainland China and Hong Kong.Particular emphasis was placed on promoting face oil and acquiring new customers in skincare within the Jurlique brand. The company concentrated its efforts on targeted marketing strategies to drive growth within this segment.
For the full fiscal year ending December 2023, the company maintains its previous forecasts of sales of 180 billion yen ($1.2 billion), up 8.2% from the previous fiscal year, and operating income of 16 billion yen, up 27.2%. Despite some signs of recovery in demand in the Chinese market, which has seen some declines due to water treatment issues, the company said it will continue to monitor the situation and react accordingly.