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Kao Reports 2.7% YoY Growth in Net Sales for First Half of 2025

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Kao Reports 2.7% YoY Growth in Net Sales for First Half of 2025

August 6, 2025 - Kao Group released its financial results for the first half of 2025, reporting steady growth amid challenging market conditions.

Financial Highlights (H1 2025)

  • Net Sales:                ¥809.02 billion (+2.7% YoY)

  • Operating Income:                ¥69.47 billion (+19.9% YoY)

  • Net Income:                ¥49.47 billion (+10.4% YoY)

  • Net Profit Attributable to Owners:                ¥49.63 billion (+14.3% YoY)

Business Environment & Challenges

Kao cites multiple headwinds including changing tariff policies affecting international supply chains, persistent geopolitical risks in Europe and the Middle East, and sluggish domestic demand recovery in Japan due to sustained high prices.

Segment Performance

Global Consumer Care

¥605.8 billion (+0.6% YoY)

Asia Business

¥102.9 billion (-7.4% YoY)

Notable Product Performance

  • Successful marketing of Laurier sanitary napkins in China drove sales growth

  • Merries baby diapers saw increased sales in Japan but declined in Asia

  • Merries operating income returned to profitability in Q1

Future Outlook & Strategy

Upgraded Full-Year Forecast

Following strong H1 results, Kao has revised its 2025 fiscal targets:

Net Sales

¥1.69 trillion (+3.8%)

Operating Profit

¥165 billion (+12.5%)

Share Buyback Program

¥80 billion program announced to enhance shareholder returns

Risk Factors

  • Global economic uncertainty

  • Exchange rate volatility (yen depreciation impact)

  • Competitive pressure from local brands in China

Source: Kao Group Financial Report - First Half 2025 Results

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