Kao Corp Ord (KAOCF) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Now let me present the financial results for the first half of this year. Thank you very much for coming despite your very busy schedules. First, please turn to page 4. This year is positioned as the year to achieve two goals in parallel. to improve earning power and solidify our operations in Japan, and to use the profits earned from these efforts to build a foundation for global expansion in growth and focus areas. Looking back on the first half of the year from this perspective, we were able to achieve solid results as planned. As you see here, the three main contributors to solidifying business in Japan are continued market share expansion in fabric and home care, improved profitability in cosmetics, and significant growth in the high premium hair care area. We also rolled out measures for global growth in focus areas such as UV care and cosmetics. Based on the positive feedback that the plan is progressing well, we have revised upward our full year operating income forecast for fiscal year 2025 from the 160 billion yen announced at the Q1 results meeting to 165 billion yen. At the same time, the company also resolved today to repurchase up to 15 million shares, or a total amount of 80 billion yen. This capital policy is based on a comprehensive assessment of capital efficiency improvement and shareholder return. We will continue to focus on creating shareholder value by maintaining the necessary financial flexibility while continuing to emphasize investments in future growth. Now please turn to page six. Net sales increased 2.7% to reach 809 billion yen. Excluding the effective currency translation, net sales increased 3.7%. Gross margin was 38.5%, the same level as the same period of the previous year. But for the GC business alone, an improvement of 1.2 points...