Kao Corporation has reported a 39% increase in net profit for the first quarter of 2025, reaching 17.3 billion yen (approximately 110 million euros), compared to the same period last year. This growth has been mainly driven by increased sales of beauty and personal care products.
Outstanding financial performance
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Net sales: 365.8 billion yen, an increase of 5.2% year-on-year.
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Operating profit: 22.0 billion yen, increasing by 14.7 billion compared to the previous year.
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Net profit: 17.3 billion yen, an increase of 12.0 billion compared to the same period last year.
These results reflect the effectiveness of Kao's strategies, including the implementation of its "K27" medium-term plan and the "Global Sharp Top Strategy", aimed at providing leading solutions that address critical customer needs.
Performance by segment
Health and beauty care business: Sales increased 9.1% year-on-year, reaching 94.8 billion yen. This growth is attributed to strong demand for skin and hair care products, highlighting brands such as Bondi Sands, acquired in November 2023, and the launch of the new premium hair care brand "melt" in Japan.
Cosmetics business: Sales grew 5.4% year-on-year, totaling 54.6 billion yen. Performance was solid in Japan and Europe, driven by prestige brands such as KANEBO and SOFINA iP. However, in China, sales were negatively affected due to local reactions related to the discharge of treated water from the Fukushima nuclear plant, especially impacting the Curél brand.
Future outlook
Kao anticipates that by the end of fiscal year 2025, net sales will reach 1,670.0 billion yen, which would represent an increase of 2.6% compared to the previous year. Likewise, operating profit is expected to increase by 9.1%, standing at 160.0 billion yen. The company will continue to focus on strengthening its offering of high value-added products and improving its digital marketing strategy to drive sustained growth.
These results reflect Kao's ability to adapt to changing market conditions and its commitment to innovation in the cosmetics and personal care sector.