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Kao releases consolidated financial results for the three months ended March 31, 2022

While the global economy was on a recovery track, the business environment remained unclear due to impacts including hikes in raw material prices since last year, rapid exchange rate fluctuations, as well as the Russia-Ukraine crisis and the spread of variants of COVID-19. According to retail sales and consumer purchasing survey data, the consumer products (household and personal care products and cosmetics) market in Japan, which is the Kao Group's key market, were slightly higher year-on-year during the period from January to March 2022. Amid these circumstances, the Kao Group is steadily advancing the management strategy announced in February 2022, including the capital allocation policy and brand management reform, among other factors. As a result, net sales increased 8.2% compared with the same period a year earlier to 346.8 billion yen. On a like-for-like basis, net sales increased 4.8%. Operating income was 23.0 billion yen, a decrease of 8.0 billion yen compared with the same period a year earlier, and income before income taxes was 25.7 billion yen, a decrease of 8.2 billion yen. Net income was 18.8 billion yen, a decrease of 7.5 billion yen. 
 
In the Consumer Products Business, sales increased 2.4% compared with the same period a year earlier to 262.9 billion yen. On a like-for-like basis, sales decreased 0.4%. As countries or regions were moving toward economic normalization, lifting various regulations to prevent the spread of COVID-19, the business was affected by hikes in raw material prices worldwide, the delay of market recovery due to the spread of variants of COVID-19 in Japan and other factors, and the logistics disruption in the United States. Amid these circumstances, various negotiations for substantive price increases are going smoothly in Japan and price increases outside Japan have started to gradually show results. In Japan, sales decreased 2.5% to 166.2 billion yen. In Asia, sales increased 14.0% to 58.7 billion yen. On a like-for-like basis, sales increased 4.4%. In the Americas, sales increased 3.4% to 23.1 billion yen. On a like-for-like basis, sales decreased 5.3%. In Europe, sales increased 20.1% to 14.9 billion yen. On a like-for-like basis, sales increased 16.0%. Operating income decreased 9.1 billion yen compared with the same period a year earlier to 13.2 billion yen due to the impacts of hikes in raw material prices and other factors.  
 
For the full report, click here

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