Komori
Financial results presentation4452Kao CorporationMaterials and Chemicals

Overview of consolidated financial results for the nine months ended 30 September 2026

For the nine months ended 30 September 2026, revenue, operating income, net income and EPS exceeded the year-earlier period, with revenue, net income and EPS reaching record highs. Operating income increased substantially, driven by price revisions, volume growth and expansion in the cosmetics and electronic materials businesses, and the company expects to achieve full-year operating income of ¥190 billion.

Worth reading
71In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
321
¥100 million (year-on-year change in operating income)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationCumulative third quarter, 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 Sales¥13,193 hundred million+7.1%
Operating profit¥1,465 hundred million+28.1%
Net income¥1,057 100 million +24.5%profit for the year
Gross Profit Margin40.1 %
Operating profit margin11.1 %
Results for the three months of the current quarter
Net Sales
¥4,474 hundred million+5.8%
Operating profit
¥507 hundred million+12.1%
Pretax profit
¥513 hundred million+7.7%
Profit for the period
¥395 hundred million+11.5%
Operating profit margin
11.3 %
yoy_change_points0.6
Full-year earnings forecast
Operating profit
¥1,900 hundred million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Selling Prices+¥35 billion (full-year forecast) / +¥20 billion (Q3 cumulative GC)
  • Volume+¥11 billion (full-year forecast) / +¥9 billion (Q3 cumulative GC)
  • Raw Materials-¥16.5 billion (full-year forecast) / -¥5.5 billion (Q3 cumulative)
  • Chemicals cost of sales and gross profit+¥7.5 billion (full-year forecast) / +¥2.5 billion (Q3 cumulative)
  • Selling, general and administrative expenses-¥24 billion (full-year forecast) / -¥15 billion (Q3 cumulative)
  • Gain on sale of land+¥11.5 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Full-year impact of raw material prices on the GC business¥165 hundred million
  • Exchange rates (Q3 cumulative)USD/JPY 158.52, EUR/JPY 184.07, CNY/JPY 23.24
New initiatives
  • Implement measures to strengthen the earnings base, centered on the overseas business, in Q4
  • Strengthen price and inventory management to respond to sharp changes in oleochemical market conditions
  • Accelerate new adoptions and sales expansion for electronic materials
  • Launch new products and expand into new price ranges, including Biore, est, Magiclean and SOFINA iP BASIC+
Key KPIsA metric the company considers important as a management benchmark.
  • Share of the Japan toiletries market25.3 %
    Year on year against the same period last year+0.4pts
  • ROIC11.2 %
    Year on year against the same period last year+2.0pts
  • Continued earnings growth in the cosmetics business7 Consecutive quarters
  • Electronic materials revenue19 % increase
    Year on year against the same period last year+19%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • GC business: volume, etc.1.2 %
    Year on year against the same period last year+1.2%
  • GC business: prices2.2 %
    Year on year against the same period last year+2.2%
  • Chemicals business: volume, etc.-3.4 %
    Year on year against the same period last year-3.4%
  • Chemicals business: prices5.9 %
    Year on year against the same period last year+5.9%
Segment results
  • GC business
    Net Sales¥9,867 hundred million (YoY +3.4%)
    Operating profit¥1,078 hundred million
  • Chemicals Business
    Net Sales¥3,688 hundred million (YoY +2.5%)
    Operating profit¥270 hundred million
  • Fabric & Home Care
    Net Sales¥2,940 hundred million (YoY +4.8%)
    Operating profit¥575 hundred million
  • Sanitary
    Net Sales¥1,223 hundred million (YoY -1.3%)
    Operating profit¥64 hundred million
  • Hygiene and Living Care Business
    Net Sales¥4,164 hundred million (YoY +2.9%)
    Operating profit¥638 hundred million
  • Health and Beauty Care Business
    Net Sales¥3,417 hundred million (YoY +2.1%)
    Operating profit¥323 hundred million
  • Cosmetics Business
    Net Sales¥1,994 hundred million (YoY +6.5%)
    Operating profit¥98 hundred million
  • Business Connected Business
    Net Sales¥292 hundred million (YoY +4.4%)
    Operating profit¥18 hundred million
Medium-term management plan targets
  • ROIC
    Target value11
    Target fiscal year2,027
  • EVA
    Target value700
    Target fiscal year2,027
  • Operating income
    Target value2,117
    Target fiscal year2,027
Financial targets
ROIC
Actual results11.2 %
Target11 %
Target fiscal year2,027 %
EVA
Target¥700 hundred million
Target fiscal year¥2,027 hundred million
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
  • ¥165 billions full-year impact
    DetailsHigher raw material costs in the GC business
  • ¥110 hundred million
    DetailsRestructuring costs for overseas underperforming businesses
Market Size / Share
  • Share of the Japan toiletries market25.3 %
    Year on year against the same period last year+0.4pts
  • Growth rate of the domestic toiletries market (Q3)103 Year-on-year index
  • Growth rate of the domestic cosmetics market (Q3)101 Year-on-year index
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredCumulative third quarter, fiscal year ending December 2026
Net Sales¥13,193 hundred million (YoY +7.1%)
Operating profit¥1,465 hundred million (YoY +28.1%)
Net income¥1,057 100 million (profit for the year) (YoY +24.5%)
Gross Profit Margin40.1 %
Operating profit margin11.1 %
Results for the three months of the current quarterNet Sales ¥4,474 hundred million (YoY +5.8%) / Operating profit ¥507 hundred million (YoY +12.1%) / Pretax profit ¥513 hundred million (YoY +7.7%) / Profit for the period ¥395 hundred million (YoY +11.5%) / Operating profit margin 11.3 %
Full-year earnings forecastOperating profit ¥1,900 hundred million
Segment resultsSegment GC business / Net Sales ¥9,867 hundred million (YoY +3.4%) / Operating profit ¥1,078 hundred million, Segment Chemicals Business / Net Sales ¥3,688 hundred million (YoY +2.5%) / Operating profit ¥270 hundred million, Segment Fabric & Home Care / Net Sales ¥2,940 hundred million (YoY +4.8%) / Operating profit ¥575 hundred million, Segment Sanitary / Net Sales ¥1,223 hundred million (YoY -1.3%) / Operating profit ¥64 hundred million, Segment Hygiene and Living Care Business / Net Sales ¥4,164 hundred million (YoY +2.9%) / Operating profit ¥638 hundred million, Segment Health and Beauty Care Business / Net Sales ¥3,417 hundred million (YoY +2.1%) / Operating profit ¥323 hundred million, Segment Cosmetics Business / Net Sales ¥1,994 hundred million (YoY +6.5%) / Operating profit ¥98 hundred million, Segment Business Connected Business / Net Sales ¥292 hundred million (YoY +4.4%) / Operating profit ¥18 hundred million
Breakdown of Factors Affecting the ChangeFactors Selling Prices / Amount +¥35 billion (full-year forecast) / +¥20 billion (Q3 cumulative GC), Factors Volume / Amount +¥11 billion (full-year forecast) / +¥9 billion (Q3 cumulative GC), Factors Raw Materials / Amount -¥16.5 billion (full-year forecast) / -¥5.5 billion (Q3 cumulative), Factors Chemicals cost of sales and gross profit / Amount +¥7.5 billion (full-year forecast) / +¥2.5 billion (Q3 cumulative), Factors Selling, general and administrative expenses / Amount -¥24 billion (full-year forecast) / -¥15 billion (Q3 cumulative), Factors Gain on sale of land / Amount +¥11.5 billion
Key KPIsIndicator name Share of the Japan toiletries market / Value 25.3 % / Year on year against the same period last year +0.4pts, Indicator name ROIC / Value 11.2 % / Year on year against the same period last year +2.0pts, Indicator name Continued earnings growth in the cosmetics business / Value 7 Consecutive quarters / Year on year against the same period last year Not disclosed, Indicator name Electronic materials revenue / Value 19 % increase / Year on year against the same period last year +19%
Unit price and quantity metricsIndicator name GC business: volume, etc. / Value 1.2 % / Year on year against the same period last year +1.2%, Indicator name GC business: prices / Value 2.2 % / Year on year against the same period last year +2.2%, Indicator name Chemicals business: volume, etc. / Value -3.4 % / Year on year against the same period last year -3.4%, Indicator name Chemicals business: prices / Value 5.9 % / Year on year against the same period last year +5.9%
Assumptions Underlying the Business OutlookItem Full-year impact of raw material prices on the GC business / Value ¥165 hundred million, Item Exchange rates (Q3 cumulative) / Value USD/JPY 158.52, EUR/JPY 184.07, CNY/JPY 23.24
Risk amount incorporated into the outlookDetails Higher raw material costs in the GC business / Amount ¥165 billions (full-year impact), Details Restructuring costs for overseas underperforming businesses / Amount ¥110 hundred million
Medium-term management plan targetsItem ROIC / Target value 11 % or higher / Target fiscal year 2,027 % or higher, Item EVA / Target value ¥700 100 million or more / Target fiscal year ¥2,027 100 million or more, Item Operating income / Target value 2,117 over ¥100 million / Target fiscal year 2,027 over ¥100 million
Financial targetsROIC Actual results 11.2 % / Target 11 % / Target fiscal year 2,027 % / EVA Actual results Not disclosed / Target ¥700 hundred million / Target fiscal year ¥2,027 hundred million
Market Size / ShareItem Share of the Japan toiletries market / Value 25.3 % / Year on year against the same period last year +0.4pts, Item Growth rate of the domestic toiletries market (Q3) / Value 103 Year-on-year index / Year on year against the same period last year Not disclosed, Item Growth rate of the domestic cosmetics market (Q3) / Value 101 Year-on-year index / Year on year against the same period last year Not disclosed
New initiativesImplement measures to strengthen the earnings base, centered on the overseas business, in Q4, Strengthen price and inventory management to respond to sharp changes in oleochemical market conditions, Accelerate new adoptions and sales expansion for electronic materials, Launch new products and expand into new price ranges, including Biore, est, Magiclean and SOFINA iP BASIC+
Items this document does not state (12)
Ordinary incomeSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesAnnual 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 was driven by sales price revisions that exceeded the increase in raw material costs, volume growth centered on cosmetics, higher value-added products, an improved product mix, and growth in cosmetics and electronic materials. The company explained that strategic investments in human resources and marketing also contributed to enhancing its earnings power and increasing volumes.

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Overview of consolidated financial results for the nine months ended 30 September 2026 | Kao Corporation (4452) timely disclosure | Komori