Kao's operating profit for the first half of 2026 increased 38.5% year on year, prompting an upward revision to its full-year forecast. By business segment, sales and profits in cosmetics and health and beauty care remained solid, with growth continuing in Japan and overseas.
Kao reported its results for the first half of 2026, with net sales of ¥649.5 billion and operating profit of ¥65.7 billion. On an underlying basis, sales increased 4.1% from the previous period, while operating profit rose 20.3%.
The cosmetics business was supported by growing demand in Japan and overseas, with sales of ¥131.0 billion and operating profit increasing by approximately ¥5.8 billion. In Japan, strong performance by 6 priority brands contributed to the results, while expansion in the Asian market provided additional support.
Sales in the health and beauty care business increased 8.1% from the previous period, while operating profit increased by ¥19.0 billion. UV-care products under the Bioré brand in Japan and Asia led the growth, while the recovery of acquired brands also contributed in the Americas.
The full-year earnings forecast was revised upward. While maintaining its assumptions regarding the impact of tariff policies and geopolitical risks, Kao plans to strengthen its global procurement and production structure and pursue cost reductions and price pass-through. It also plans to introduce a new shareholder benefits program as part of its shareholder returns.