THE WHAT? Kao Corporation reported a modest 0.6% increase in net sales from the previous year, totalling 738.5 billion yen. When considering currency translations, the adjusted sales decreased by 2.3%. Their operating income dropped significantly by 27.8 billion yen from the year before, settling at 25.9 billion yen. The Chemical Business underperformed, offsetting gains from the Consumer Products Business.
THE DETAILS Different regions showed varied sales figures: Japan experienced a 2.4% increase (368.1 billion yen), Asia’s sales marginally grew by 0.2% (113.4 billion yen), the Americas witnessed a 14.4% jump (60.9 billion yen), and Europe recorded an 11.4% rise (34.6 billion yen). Sales increased by 6.8% to 188.8 billion yen in the Health and Beauty Care sector. While skin care sales grew, hair care sales remained static, and personal health product sales dipped.
THE WHY? Despite some regions showing recovery post-COVID-19, market unpredictability remains due to geopolitical issues in Europe, a decelerating market in China, and inflation-induced high costs.