Kao Group FY23: Net sales drop 1.2 percent

Kao Group FY23: Net sales drop 1.2 percent

THE WHAT?   Kao Group announced its fiscal 2023 results, net sales decreased by 1.2% to 1,532.6 billion yen, with a like-for-like decline of 3.8%. Operating income significantly dropped to 60.0 billion yen due to structural reform expenses.

THE DETAILS The Consumer Products Business witnessed a 1.4% increase in sales, reaching 1,210.3 billion yen, despite a minor like-for-like decrease. Strategic price increases and the introduction of high-value products helped mitigate the impact of rising raw material costs. Additionally, the Health and Beauty Care Business saw a 6.3% increase in sales to 392.9 billion yen, driven by strong skincare and hair care product sales and the strategic acquisition of Bondi Sands.

THE WHY? Despite the return to normalcy post-pandemic,  Kao Group faced a challenging business environment characterized by a slowdown in the Chinese market, geopolitical tensions, and inflationary pressures.