We thank you for the generous and continued support you provide us.
Although our earnings in FYE March 2019 show a decrease year on year, this is due to changes in the accounting method for deducting items (which were handled as expenses before), from sales in overseas consolidated subsidiaries that were consolidated under financial statements conforming to the International Financial Reporting Standards which we adopted starting this fiscal year. Therefore, earnings will actually increase slightly, by 0.2% from the same period last year, if business performance in the same period last year was calculated based on the current standards. Profits at all stages decreased.
In sales turnover, we only achieved a small increase. Our men's brand GATSBY performed well in Japan thanks to the brisk sales of seasonal summer products. LUCIDO, our brand targeting middle-aged men, increased steadily in sales but the women's brand Barrier Repair dipped hugely in sales, impacted by the rapid pace of decline in demand from cross-border e-commerce from the second quarter onwards. In Indonesia, market competition intensified to result in the sluggish growth of GATSBY Styling Pomade and Urban Cologne, which had been growth drivers in recent years, leading to a decrease in income. Meanwhile, in other overseas markets, many countries saw GATSBY styling and Bifesta products selling well.
In terms of profits, we posted decreases because of the effects of the fall in earnings in Japan and Indonesia as well as the rise in costs associated with our improvement effort on corporate infrastructure as planned in MP-12.
We positioned MP-12, our 12th Middle Range Plan, as the Corporate Infrastructure Development Period for Realizing VISION 2027. The basic policies we adopted are: the promotion of category strategies and thorough implementation of brand value enhancement activities; the improvement of growth in overseas operations focusing on Indonesia; and the building of a group operation system and productivity improvement per unit. In view of the upcoming "population bonus" period, we are steadily engaging in programs to globalize our business management to allow the Mandom Group to undergo dynamic and dramatic growth hand in hand with the overall growth of Asia.
In specific terms, we aim to turn our core brand GATSBY into a true global brand. We are now undertaking its rebranding. As a Group-wide effort, we are tackling all tasks necessary for brand value enhancement and for boosting customer preference for our products, especially addressing young Asian men who have become increasingly borderless in their lifestyle. We have gathered marketing managers in Japan and held discussions involving all participants, talking about brand value and the ideal vision for GATSBY in the medium to long term. We likewise held sharing sessions of marketing success stories from different countries.
The key project we are undertaking on Group infrastructure development is the introduction of a common accounting system that would enable us to make management decisions from a Group-wide optimal perspective. Following on from Japan and Thailand, the system is now fully fledged in Indonesia. As we regard ourselves as a "human-oriented" company, we aim to create a good work environment and reform our way of working so that we live up to this name. With this in mind, we relocated our Nihonbashi Office in Tokyo and our Head Office in Indonesia.
We intend to continue in pursuit of VISION 2027 and in materializing the ideal company we want to become. To this end, we will continue to work hard this year to address and solve our immediate issues, and complete the necessary environmental improvements so that we can fully develop our corporate infrastructure. In so doing, we will give fresh impetus to regaining increases in sales and profits.
I would appreciate your further support for our drive to reach our goal.
President Executive Officer & Director