Kao releases consolidated financial results for the three months ended March 31, 2021

The novel coronavirus (COVID-19) pandemic continued to have a major impact on social and economic activites and the lives of people around the world. Expectations for vaccines are growing, but conditions in the global economy remained unclear, with delays in the recovery of consumption due to border controls, restrictions on going outside, mandated temporary store closures and other factors in each country and region as the number of infections repeatedly rises and falls. 

According to retail sales and consumer purchasing survey data, the consumer products (cosmetics and household and personal care products) market in Japan, which is the Kao Group's key market, shrank year-on-year during the period from January - March 31, 2021, reflecting the absence of the increase in demand, mainly for hygiene-related products, that occurred in the same period a year earlier when the pandemic began in Japan. 

Average unit prices for household and personal care products increased by 7 points compared with the same period a year earlier due to a shift to larger-volume product sizes. 

Amid these circumstances, net sales decreased 5.1% compared with the same period a year earlier to 320.6 billion yen. On a like-for-like basis, net sales decreased 5.7%. Operating income was 30.9 billion yen, a decrease of 8.3 billion yen compared with the same period a year earlier, and income before income taxes was 33.9 billion yen, a decrease of 3.4 billion yen. Net income was 26.2 billion yen, a decrease of 0.9 billion yen. 
 
In the Consumer Products Business, sales decreased 7.3% compared with the same period a year earlier to 256.6 billion yen. On a like-for-like basis, sales decreased 7.8%. The market shrank in various categories, reflecting the absence of the increase in demand, mainly for hygiene-related products, that occurred in the same period a year earlier when the pandemic began worldwide. Lockdowns or declarations of state emergency in each country or region also had an impact.

In the Americas, sales decreased 1.2% to 22.4 billion yen. On a like-for-like basis, sales decreased 0.2%. In Europe, sales decreased 5.1% to 12.4 billion yen. On a like-for-like basis, sales decreased 10.2%.

Operating income decreased 9.6 billion yen compared with the same period a year earlier to 22.2 billion yen.  

Although the business environment is expected to remain uncertain due to the COVID-19 pandemic, the Kao Group aims to achieve the figures announced in its forecast by steadily implementing the strategies of the Kao Group Mid-term plan 2025 "K25" covering the five years starting this fiscal year. 
 
For the full report, cklick here.