THE WHAT? Kao has reported its results for the nine months to September 30, 2021. The Japanese personal care manufacturer saw net sales inch up a modest 1.6 percent to ¥1.021 billion versus the prior-year period.
THE DETAILS Operating income dropped ¥11.1 billion to ¥109 billion and net income was down ¥4 billion to ¥83.4 billion.
The group’s Cosmetics unit was the star performer, with sales up 3.5 percent on the equivalent 2020 figures to hit ¥165.9 billion, while the Life care division saw sales grow 1.4 percent to ¥38.1 billion. Both Hygiene and living care and Health and beauty care experienced falls in sales of 2.7 percent and 3.2 percent respectively.
THE WHY? The J-beauty giant said in a statement, “During the period from January to September 2021, the household and personal care products market in Japan, which is the Kao Group’s key market, began to show signs of recovery but shrank due to repeated resurgences of infections and the absence of the increase in demand that arose in the previous year. In addition, the cosmetics market shrank, and recovery lacked force due to the substantial impact of the state of emergency, which continued in various regions of Japan.”