Overview of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 2026 | Kao Corporation (4452) timely disclosure

Worth reading

74In focus

Scored from 5 of 6 sections

Direction

Improvement

Direction inferred from the company’s description.

Scale

140

¥100 million (year-on-year change in operating income)

Wording

Avoiding a definitive answer

How definitive the wording is.

Contents of this document

Presentation materials on financial resultsFirst quarter of the fiscal year ending December 202610 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales4,132 Hundred millions of yen+6.0%

Operating profit449 Hundred millions of yen+45.3%

Net income¥310 100 million +35.7%profit attributable to owners of the parent

Gross Profit Margin38.4%, up 0.4 percentage points year on year

Operating profit margin10.9%, up 3.0 percentage points year on year

Results for the three months of the current quarterResults for the standalone first quarter of 2026, including revenue of ¥413.2 billion, operating income of ¥44.9 billion, profit before tax of ¥46.0 billion and profit attributable to owners of the parent of ¥31.0 billion

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Progress toward achieving K27 is in line with the plan

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Raw Materials+¥1 billion
Selling Prices+¥5.0 billion
Number of versions+¥3.0 billion
Other and product mix differences+¥1.5 billion
Cost of sales in the Chemicals business-¥4.0 billion
Change in SG&A expenses-¥5.0 billion
Gain on sale of land+¥11.5 billion
Total change in operating income+¥14.0 billion (of which +¥2.5 billion excluding the gain on sale of land)

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Assumed exchange rates: ¥156.81 to the US dollar, ¥183.57 to the euro and ¥22.64 to the Chinese yuan. The policy is to address higher raw material costs through price pass-through. Supply of the planned volumes for the year is expected to be secured

New initiatives

Accelerate growth in priority businesses and optimize overseas businesses facing challenges through selective focus and concentration
Integrated upstream and downstream management, including the Chemicals business
Sale of land as part of logistics optimization
Planned briefings on the marketing strategy and research and development strategy
Achieve full traceability, expand grievance mechanisms, strengthen disclosures on forest-related procurement, and conduct independent third-party reviews

Key KPIsA metric the company considers important as a management benchmark.

ROIC10.1%
Year on year against the same period last year+2.6 percentage points
Kao toiletries market share25.2%
Year on year against the same period last year+0.6 percentage points
Laundry detergent market share47%
Year on year against the same period last year+1.0 percentage points
Sun care market share32%
Year on year against the same period last year+2.6 percentage points
Facial cleanser market share31%
Year on year against the same period last year+4.2 percentage points
In-bath hair care market share15%
Year on year against the same period last year+1.9 percentage points
Growth in sales of priority brands (Cosmetics)+10%、+27%、+7%、+4%
Year-on-year sales growth in priority overseas businessesCosmetics +5%, UV care +18%, JERGENS Base +8%, Laurier +4%, electronic materials +10%
Year on year against the same period last yearYear on year

Unit price and quantity metricsThese figures show sales broken down by price and volume.

Breakdown of changes in GC business revenue into volume and other factors and pricing. Overall: volume and other factors +1.8%, pricing +0.7%; GC business: volume and other factors +2.9%, pricing +1.0%

Segment results

GC business
Net Sales¥306.8 billion, up 3.9% year on year on an underlying basis
Operating profit¥29.6 billion, up ¥6.8 billion year on year
Chemicals Business
Net Sales¥118.3 billion, down 0.5% year on year on an underlying basis
Operating profit¥3.6 billion, down ¥4.5 billion year on year
Fabric & Home Care
Net Sales¥88.3 billion, up 4.1% year on year on an underlying basis
Operating profit¥17.0 billion, up ¥2.5 billion year on year
Sanitary
Net Sales¥40.7 billion, down 1.6% year on year on an underlying basis
Operating profit¥2.6 billion, up ¥0.4 billion year on year
Health and Beauty Care Business
Net Sales¥106.5 billion, up 5.3% year on year on an underlying basis
Operating profit¥7.9 billion, up ¥1.2 billion year on year
Cosmetics Business
Net Sales¥62.9 billion, up 5.0% year on year on an underlying basis
Operating profit¥2.1 billion, up ¥2.7 billion year on year
Business Connected Business
Net Sales¥8.5 billion, up 2.9% year on year on an underlying basis
Operating profit¥0.1 billion, up ¥0.2 billion year on year

Medium-term management plan targets

Increase the likelihood of achieving K27 and meet the 2030 targets for responsible raw material sourcing. Specific financial targets for K27: not disclosed

Financial targets

ROIC actual result: 10.1%. Other financial targets: not disclosed

Market Size / Share

Domestic toiletries market: Q1 year-on-year index of 105%; cosmetics market: Q1 year-on-year index of 98%. Kao toiletries market share: 25.2%, up 0.6 percentage points year on year

Contents of this document
Item	Details
Document type	Presentation materials on financial results
Fiscal Period Covered	First quarter of the fiscal year ending December 2026
Net Sales	4,132 Hundred millions of yen (YoY +6.0%)
Operating profit	449 Hundred millions of yen (YoY +45.3%)
Net income	¥310 100 million (profit attributable to owners of the parent) (YoY +35.7%)
Gross Profit Margin	38.4%, up 0.4 percentage points year on year
Operating profit margin	10.9%, up 3.0 percentage points year on year
Results for the three months of the current quarter	Results for the standalone first quarter of 2026, including revenue of ¥413.2 billion, operating income of ¥44.9 billion, profit before tax of ¥46.0 billion and profit attributable to owners of the parent of ¥31.0 billion
Self-assessment against the plan	Progress toward achieving K27 is in line with the plan
Segment results	Segment GC business / Net Sales ¥306.8 billion, up 3.9% year on year on an underlying basis / Operating profit ¥29.6 billion, up ¥6.8 billion year on year, Segment Chemicals Business / Net Sales ¥118.3 billion, down 0.5% year on year on an underlying basis / Operating profit ¥3.6 billion, down ¥4.5 billion year on year, Segment Fabric & Home Care / Net Sales ¥88.3 billion, up 4.1% year on year on an underlying basis / Operating profit ¥17.0 billion, up ¥2.5 billion year on year, Segment Sanitary / Net Sales ¥40.7 billion, down 1.6% year on year on an underlying basis / Operating profit ¥2.6 billion, up ¥0.4 billion year on year, Segment Health and Beauty Care Business / Net Sales ¥106.5 billion, up 5.3% year on year on an underlying basis / Operating profit ¥7.9 billion, up ¥1.2 billion year on year, Segment Cosmetics Business / Net Sales ¥62.9 billion, up 5.0% year on year on an underlying basis / Operating profit ¥2.1 billion, up ¥2.7 billion year on year, Segment Business Connected Business / Net Sales ¥8.5 billion, up 2.9% year on year on an underlying basis / Operating profit ¥0.1 billion, up ¥0.2 billion year on year
Breakdown of Factors Affecting the Change	Factors Raw Materials / Amount +¥1 billion, Factors Selling Prices / Amount +¥5.0 billion, Factors Number of versions / Amount +¥3.0 billion, Factors Other and product mix differences / Amount +¥1.5 billion, Factors Cost of sales in the Chemicals business / Amount -¥4.0 billion, Factors Change in SG&A expenses / Amount -¥5.0 billion, Factors Gain on sale of land / Amount +¥11.5 billion, Factors Total change in operating income / Amount +¥14.0 billion (of which +¥2.5 billion excluding the gain on sale of land)
Key KPIs	Indicator ROIC / Value 10.1% / Year on year against the same period last year +2.6 percentage points, Indicator Kao toiletries market share / Value 25.2% / Year on year against the same period last year +0.6 percentage points, Indicator Laundry detergent market share / Value 47% / Year on year against the same period last year +1.0 percentage points, Indicator Sun care market share / Value 32% / Year on year against the same period last year +2.6 percentage points, Indicator Facial cleanser market share / Value 31% / Year on year against the same period last year +4.2 percentage points, Indicator In-bath hair care market share / Value 15% / Year on year against the same period last year +1.9 percentage points, Indicator Growth in sales of priority brands (Cosmetics) / Value +10%、+27%、+7%、+4% / Year on year against the same period last year Not disclosed, Indicator Year-on-year sales growth in priority overseas businesses / Value Cosmetics +5%, UV care +18%, JERGENS Base +8%, Laurier +4%, electronic materials +10% / Year on year against the same period last year Year on year
Unit price and quantity metrics	Breakdown of changes in GC business revenue into volume and other factors and pricing. Overall: volume and other factors +1.8%, pricing +0.7%; GC business: volume and other factors +2.9%, pricing +1.0%
Assumptions Underlying the Business Outlook	Assumed exchange rates: ¥156.81 to the US dollar, ¥183.57 to the euro and ¥22.64 to the Chinese yuan. The policy is to address higher raw material costs through price pass-through. Supply of the planned volumes for the year is expected to be secured
Medium-term management plan targets	Increase the likelihood of achieving K27 and meet the 2030 targets for responsible raw material sourcing. Specific financial targets for K27: not disclosed
Financial targets	ROIC actual result: 10.1%. Other financial targets: not disclosed
Market Size / Share	Domestic toiletries market: Q1 year-on-year index of 105%; cosmetics market: Q1 year-on-year index of 98%. Kao toiletries market share: 25.2%, up 0.6 percentage points year on year
New initiatives	Accelerate growth in priority businesses and optimize overseas businesses facing challenges through selective focus and concentration, Integrated upstream and downstream management, including the Chemicals business, Sale of land as part of logistics optimization, Planned briefings on the marketing strategy and research and development strategy, Achieve full traceability, expand grievance mechanisms, strengthen disclosures on forest-related procurement, and conduct independent third-party reviews

Items this document does not state (13)

Ordinary incomeSelling, general and administrative expensesFull-year earnings forecastProgress against full-year forecastNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Profit in the Japan GC business increased due to higher value-added products, price revisions and higher volumes. In addition, the company sold land as part of its logistics optimization efforts and recorded a gain on the sale of ¥11.5 billion. In the Chemicals business, earnings declined because of a lag in passing higher raw material costs through to prices for oleochemical products in Europe and the United States, as well as weaker demand.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.

Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.

Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.