Japanese cosmetics manufacturer Shiseido Co. Ltd. on Aug. 6 said it expects to report a net loss and issue a lower dividend for full-year 2020 after the coronavirus pandemic wiped out profit in the first half.

The company expects to register a full-year attributable net loss of ¥22 billion, or ¥55.08 per share, compared to a profit of ¥73.56 billion in 2019. It anticipates sales declining 15.8% to ¥953 billion. The company also said it will pay out an annual dividend of ¥40, down from ¥60 in fiscal 2019.

Shiseido in May withdrew its guidance and dividend for fiscal 2020 due to the uncertainty related to the ongoing spread of the coronavirus. The new forecast is "based on the assumption that social and economic activities will continue under the influence of COVID-19 in major countries."

The guidance came as Shiseido reported an attributable loss of ¥21.38 billion, or ¥53.51 per share, for the six months to June 30, compared to a net profit of ¥52.45 billion, or EPS of ¥131.33, a year ago. The company said coronavirus-related factors contributing to the loss included compensation to employees on leave and maintenance costs at production sites and in stores.

Net sales dropped 26% to ¥417.81 billion from ¥564.65 billion, lower than the S&P Capital IQ mean consensus estimate of ¥430.13 billion with three analysts reporting. The company reported an operating loss of ¥3.44 billion versus a profit of ¥68.98 billion in the year-ago period.

Sales dropped 31.9% in Japan and 7.1% in China. Revenue fell 42.1% in the Americas, 27.8% in Asia-Pacific and 27.5% in Europe, the Middle East and Africa.

Shiseido's travel retail business' revenue declined 19%, while the professional business posted a 22.1% drop. Sales in other segments shrank 28.3%.

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Separately, the company announced that it formed a joint venture with beauty technology business Ya-Man Ltd.

"In this business, we will initially focus on the Chinese market and develop cross-border business targeting Chinese consumers who are interested in anti-aging and beauty devices," Shiseido said.

Shiseido will own 65% of the joint venture, registered as Effectim Co. Ltd., with Ya-Man holding the remainder. Ya-Man's range of products includes a skin treatment device that uses radiofrequency and a face mask featuring electrodes.

The two companies plan to begin operations in October and launch new products in Japan and China in 2021.

Shares of Shiseido closed down 1.2% at ¥6,064 on Aug. 6. The company reported after the close of the market.

As of Aug. 5, US$1 was equivalent to ¥105.44.