The company of Japanese cosmetic has suffered a decreasing of his income in the first part of the 2022. In Asia, the derivative effects of the Covid-19 continue, an example of this, are the quarantines that still extend in countries like China. To this, adds him the crisis of supply chain that affects to all the sectors, independently of his activity, and that accompanies us already from does almost 2 years. And, to complicate even more the situation, in February burst the conflict that to day of today accompanies us between Russia and Ukraine. The bellicose conflict is affecting to all the world by the encarecimiento of the products, some levels of inflation very high and an increase of the fuels that affect negatively to the companies.
The facts appointed previously have been the broth of crop that have done that in this first-half of 2022, KAO have communicated through his report that his income have collapsed . The operative income have fallen 23,9% to 53.700 million yens, a total decrease of 16.900 million yens if we compare it with the same period of the previous year. As it signals the company in the release, the sales saw potentially affected in China from April, when they went back to restart the confinements of population, and in Japan increased again the prices of significant way.
However, the business of products of consumption of KAO, devoted to the cosmetic and to the personnel care, increased 2,3% in sales with 556.900 million yens. This increase of sales is had to, partly, to the new launch campaing by part of the company like the luxury brand devoted to the make-up, SUQQU, commercialised in Asia (China, Korea and Japan) and the mark of make-up Kate.
Regarding the business of the cosmetic and of the formulation, KAO increased his number of sales, 4,9% and 32,4% respectively comparing it with the same period of the 2021.
The sales no only increased in Asia, also did it in Europe, of the hand of Sensai and of Molton Brown. In the European continent, the sales grew 10,7% until the 31,1 trillion yens. The increase was still greater in America, with 13,3% reaching the 53,2 trillion yens with regard to the same period of the past exercise. Still asi, although the figure of sales increase, is not sufficient for paliar the effects of the rise generalised of prices.
In February of this same year, the company of Japanese cosmetic did official that would renounce to 13 marks of cosmetics of face to 2024. By this reason, the company programmed the suspension of 28 marks, 15 of the which already were cancelled and 13 still have not been reported. KAO Accumulates from the past year a figure of sales that pursue a tendency to the descent, and is carrying to the company to have to take some decisions.