Kao Corporation TSE:4452
Kao : Financial Results (kao results fy2025q3 en)
Source: MarketScreener
Consolidated Financial Results for the Nine Months Ended September 30, 2025 [IFRS]
November 6, 2025
Company name: Kao Corporation Tokyo Stock Exchange in Japan Stock code: 4452 (URL: https://www.kao.com/global/en/investor-relations/library/results/) Representative: Yoshihiro Hasebe, President and CEO
Contact person: Yoshimasa Minegishi, Vice President, Financial Controllers, Global
Telephone: +81-3-3660-7111
Scheduled commencement date for dividend payments: -
Preparation of supplementary material on financial results: Yes
Financial results information meeting: Yes (for institutional investors and analysts)
(Amounts less than one million yen are rounded)
-
Consolidated financial results for the nine months ended September 30, 2025 (from January 1, 2025 to September 30, 2025)
-
Consolidated operating results (Percentages indicate year-on-year changes)
Net sales
Operating income
Income before income taxes
Net income
Nine months ended
Millions of yen
％
Millions of yen
％
Millions of yen
％
Millions of yen
％
September 30, 2025
1,232,034
3.5
114,867
13.7
119,412
14.8
84,901
16.4
September 30, 2024
1,190,011
5.7
101,055
99.3
104,016
90.6
72,917
111.1
Net income attributable to
owners of the parent
Comprehensive income
Basic earnings per share
Diluted earnings per share
Nine months ended
Millions of yen
％
Millions of yen
％
Yen
Yen
September 30, 2025
84,719
19.3
73,729
(14.4)
182.64
-
September 30, 2024
71,027
118.3
86,162
(10.2)
152.85
-
-
Consolidated financial position
Total assets
Total equity
Equity attributable to owners of the parent
Ratio of equity attributable to owners
of the parent to total assets
Equity attributable to owners of the
parent per share
As of
Millions of yen
Millions of yen
Millions of yen
％
Yen
September 30, 2025
1,791,798
1,057,494
1,029,263
57.4
2,245.81
December 31, 2024
1,867,237
1,098,835
1,066,776
57.1
2,296.69
-
Consolidated operating results (Percentages indicate year-on-year changes)
-
Dividends
Annual cash dividends per share
1st quarter end
2nd quarter end
3rd quarter end
Fiscal year end
Total
Yen
Yen
Yen
Yen
Yen
Fiscal year ended December 31, 2024
-
76.00
-
76.00
152.00
Fiscal year ending December 31, 2025
-
77.00
-
Fiscal year ending December 31, 2025 (Forecast)
77.00
154.00
Note: Revisions to the most recently announced forecast of cash dividends: None
-
Forecast of consolidated operating results for the fiscal year ending December 31, 2025 (from January 1, 2025 to December 31, 2025)
(Percentages indicate year-on-year changes)
Net Sales
Operating income
Income before income taxes
Net income attributable to owners of the parent
Basic earnings
per share
Fiscal year ending
Millions of
yen
％
Millions of
yen
％
Millions of
yen
％
Millions of
yen
％
Yen
December 31, 2025
1,690,000
3.8
165,000
12.5
168,000
11.2
121,000
12.3
262.31
Note: Revisions to the most recently announced forecast of consolidated operating results: None
- Others
(1) Significant changes in the scope of consolidation during the period: None | |||
Newly included: | - | companies | (Company name) － |
Excluded: | - | companies | (Company name) － |
(2) Changes in accounting policies and changes in accounting estimates | ||
1) Changes in accounting policies required by IFRS | ： | None |
2) Changes in accounting policies due to reasons other than 1) | ： | None |
3) Changes in accounting estimates | ： | None |
(3) Number of issued shares (ordinary shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2025
465,900,000 shares
As of December 31, 2024
465,900,000 shares
Number of treasury shares at the end of the period
As of September 30, 2025
7,596,989 shares
As of December 31, 2024
1,415,333 shares
Average number of shares outstanding during the period
Nine months ended September 30, 2025 | 463,849,224 shares |
Nine months ended September 30, 2024 | 464,672,121 shares |
(Caution regarding forward-looking statements, etc.)
Forward-looking statements such as earnings forecasts and other projections contained in this release are based on information available at the time of disclosure and assumptions that management believes to be reasonable, and do not constitute guarantees of future performance. Actual results may differ materially from expectations due to various factors.
Please refer to page 9, "1. Qualitative Information on Financial Results for the Nine Months Ended September 30, 2025, (3) Description of Information on Outlook, Including Forecasts of Consolidated Results" for the suppositions that form the assumptions for earnings forecasts and cautions concerning the use of earnings forecasts.
(Remainder of page intentionally left blank.)
Contents of Attachments1. Qualitative Information on Financial Results for the Nine Months Ended September 30, 2025 …… | 2 |
(1) Description of Operating Results ………………………………………………………………………………… | 2 |
(2) Description of Financial Position ………………………………………………………………………………… | 9 |
(3) Description of Information on Outlook, Including Forecasts of Consolidated Results …………… | 9 |
2. Condensed Consolidated Financial Statements and Notes ………………………………………………… | 10 |
(1) Condensed Consolidated Statement of Financial Position ……………………………………………… | 10 |
(2) Condensed Consolidated Statement of Income …………………………………………………………… | 12 |
(3) Condensed Consolidated Statement of Comprehensive Income ……………………………………… | 13 |
(4) Condensed Consolidated Statement of Changes in Equity ……………………………………………… | 14 |
(5) Condensed Consolidated Statement of Cash Flows ……………………………………………………… | 16 |
(6) Notes to Condensed Consolidated Financial Statements ………………………………………………… | 17 |
(7) Note regarding Assumption of Going Concern ……………………………………………………………… | 19 |
-
Qualitative Information on Financial Results for the Nine Months Ended September 30, 2025
-
Description of Operating Results
Note: Changes and comparisons are all with the same period a year earlier unless otherwise noted. Like-for-like growth rates below exclude the effect of translation of local currencies into Japanese yen. Growth by volume includes changes due to differences in product mix.
(Billions of yen, except operating margin and per share amounts)
Nine months ended September 30
2025
2024
Growth
Net sales
1,232.0
1,190.0
3.5%
Like-for-like: 4.1%
Operating income
114.9
101.1
13.7%
Operating margin (%)
9.3
8.5
-
Income before income taxes
119.4
104.0
14.8%
Net income
84.9
72.9
16.4%
Net income attributable to owners of the parent
84.7
71.0
19.3%
Basic earnings per share (Yen)
182.64
152.85
19.5%
In the global economy, conditions remain uncertain due to international supply chain disruptions and rising procurement costs resulting from the impact of changes in tariff policies, in addition to protracted geopolitical risks in Europe and the Middle East. In Japan, the impact of high prices has persisted and recovery in domestic demand has lacked strength.
According to retail sales and consumer purchasing survey data, the household and personal care products and cosmetics markets in Japan, which are the Kao Group's key markets, grew during the period from January to September 2025 compared with the same period a year earlier.
To successfully execute its Mid-term Plan 2027 ("K27") in this business environment, the Kao Group has been improving its earning power while building a foundation for global sales expansion toward profitable growth.
Net sales increased 3.5% compared with the same period a year earlier to 1,232.0 billion yen. Currency translation accounted for a 0.5% decrease and net sales increased 4.1% on a like-for-like basis (breakdown of the increase: 0.6% increase by volume, 3.5% increase by price). Operating income was
114.9 billion yen, an increase of 13.8 billion yen, and income before income taxes was 119.4 billion yen, an increase of 15.4 billion yen. Net income was 84.9 billion yen, an increase of 12.0 billion yen.
To improve capital efficiency and further increase shareholders' returns, the Board of Directors of Kao Corporation (the "Company") resolved at a meeting held on August 6, 2025, to repurchase shares of the Company's stock. As of September 30, 2025, the total number of repurchased shares was 6,232,000 for a total amount of 41.7 billion yen.
The main exchange rates used for translating the financial statement items (income and expenses) of foreign consolidated subsidiaries and associates were as shown below.
First quarter
Jan. - Mar.
Second quarter
Apr. - Jun.
Third quarter
Jul. - Sep.
U.S. dollar
152.65 (148.22)
144.49 (155.72)
147.41 (149.44)
Euro
160.48 (160.99)
163.73 (167.68)
172.30 (164.04)
Chinese yuan
20.98 (20.63)
19.98 (21.51)
20.59 (20.84)
Note: Figures in parentheses represent the exchange rates for the same period a year earlier.
Summary of Segment InformationA summary of the changes to reportable segments implemented during the three months ended March 31, 2025, is as follows. (Reference: 2. Condensed Consolidated Financial Statements and Notes, (6) Notes to Condensed Consolidated Financial Statements, 1. Segment Information on page 17.)
The "Consumer Products Business," "Hygiene and Living Care Business," and "Health and Beauty Care Business" have been renamed the "Global Consumer Care Business," "Hygiene Living Care Business," and "Health Beauty Care Business," respectively.
The Business Connected Business has been newly established within the Global Consumer Care Business. This business consists of commercial-use hygiene products (excluding Washing Systems, LLC), life care products, and other products.
Washing Systems, LLC has been included in the Chemical Business.
Net sales and operating income for the same period a year earlier have been reclassified and restated to reflect the reorganization of segments in items 1 to 3 above.
Consolidated Results by Segment
Nine months ended September 30
Net sales
Operating income
2024
(Billions of yen)
2025
(Billions of yen)
Growth (%)
Like-for-like (%)
2024
2025
Change (Billions of yen)
(Billions of yen)
Operating margin (%)
(Billions of yen)
Operating margin (%)
Fabric and Home Care Products
268.4
278.4
3.7
3.6
47.8
17.8
51.6
18.5
3.8
Sanitary Products
124.6
119.5
(4.1)
(2.8)
6.3
5.1
6.1
5.1
(0.2)
Hygiene Living Care Business
393.0
397.9
1.2
1.6
54.2
13.8
57.7
14.5
3.5
Health Beauty Care Business
314.7
321.8
2.3
3.0
25.6
8.1
29.6
9.2
3.9
Cosmetics Business
173.2
181.2
4.6
4.9
(7.9)
(4.6)
3.0
1.6
10.9
Business Connected Business
29.2
28.0
(4.2)
(4.2)
4.7
16.2
1.2
4.1
(3.6)
Global Consumer Care Business
910.1
928.9
2.1
2.5
76.6
8.4
91.4
9.8
14.8
Chemical Business
313.0
336.9
7.6
8.5
25.9
8.3
22.9
6.8
(3.0)
Total
1,223.1
1,265.8
3.5
4.0
102.5
-
114.3
-
11.7
Elimination and Reconciliation
(33.1)
(33.8)
-
-
(1.5)
-
0.6
-
2.1
Consolidated
1,190.0
1,232.0
3.5
4.1
101.1
8.5
114.9
9.3
13.8
Consolidated Net Sales Composition
(Billions of yen)
Nine months ended September 30
Japan
Asia
Americas
Europe
Consolidated
Fabric and Home Care Products
2024
2025
232.8
246.7
32.9
29.5
2.8
2.3
-
-
268.4
278.4
Growth (%)
6.0
(10.3)
(17.6)
-
3.7
Like-for-like (%)
6.0
(11.6)
(13.2)
-
3.6
Sanitary Products
2024
2025
55.3
53.3
69.3
66.2
-
-
-
-
124.6
119.5
Growth (%)
(3.5)
(4.5)
-
-
(4.1)
Like-for-like (%)
(3.5)
(2.2)
-
-
(2.8)
Hygiene Living Care Business
2024
2025
288.1
300.0
102.2
95.7
2.8
2.3
-
-
393.0
397.9
Growth (%)
4.1
(6.4)
(17.6)
-
1.2
Like-for-like (%)
4.1
(5.2)
(13.2)
-
1.6
Health Beauty Care Business
2024
2025
155.9
166.9
27.1
26.8
84.9
81.7
46.8
46.4
314.7
321.8
Growth (%)
7.1
(1.1)
(3.8)
(0.8)
2.3
Like-for-like (%)
7.1
0.2
(1.2)
(1.7)
3.0
Cosmetics Business
2024
2025
116.2
123.2
31.9
32.8
5.6
5.3
19.4
19.9
173.2
181.2
Growth (%)
6.0
2.8
(5.4)
2.5
4.6
Like-for-like (%)
6.0
4.4
(3.5)
1.5
4.9
Business Connected Business
2024
2025
29.0
27.7
0.1
0.3
-
-
-
-
29.2
28.0
Growth (%)
(4.6)
89.7
-
-
(4.2)
Like-for-like (%)
(4.6)
92.8
-
-
(4.2)
Global Consumer Care Business
2024
2025
589.2
617.8
161.4
155.6
93.2
89.2
66.2
66.4
910.1
928.9
Growth (%)
4.8
(3.6)
(4.3)
0.2
2.1
Like-for-like (%)
4.8
(2.3)
(1.7)
(0.7)
2.5
Chemical Business
2024
2025
100.6
107.0
77.1
89.6
63.0
65.1
72.3
75.2
313.0
336.9
Growth (%)
6.4
16.2
3.3
4.1
7.6
Like-for-like (%)
6.4
16.3
8.1
3.4
8.5
Elimination of intersegment
2024
2025
(27.8)
(29.5)
(2.7)
(2.3)
(0.1)
(0.1)
(2.5)
(1.9)
(33.1)
(33.8)
Consolidated
2024
2025
662.0
695.3
235.8
242.9
156.1
154.1
136.1
139.7
1,190.0
1,232.0
Growth (%)
5.0
3.0
(1.3)
2.6
3.5
Like-for-like (%)
5.0
3.9
2.2
1.8
4.1
Notes:
Figures for the Global Consumer Care Business present sales to external customers and figures for the Chemical Business include sales to the Global Consumer Care Business in addition to external customers. Sales by geographic region are classified based on the location of the sales recognized.
The percentage of sales outside Japan to total net sales was 43.6% compared with 44.4% in the same period a year earlier. Starting from the three months ended March 31, 2025, this percentage is disclosed based on the location where the sales were recognized. Figures for the same period a year earlier were recalculated using the same method.
Analysis of Change in Net Sales Compared with the Same Period a Year Earlier
Change (%)
Currency Translation (%)
Like-for-Like
(%)
By Volume (%)
By Price (%)
Fabric and Home Care Products
3.7
0.1
3.6
1.6
2.0
Sanitary Products
(4.1)
(1.3)
(2.8)
(1.5)
(1.2)
Hygiene Living Care Business
1.2
(0.3)
1.6
0.6
0.9
Health Beauty Care Business
2.3
(0.7)
3.0
2.7
0.2
Cosmetics Business
4.6
(0.3)
4.9
4.0
0.9
Business Connected Business
(4.2)
(0.0)
(4.2)
(5.3)
1.2
Global Consumer Care Business
2.1
(0.4)
2.5
1.8
0.7
Chemical Business
7.6
(0.8)
8.5
(2.7)
11.2
Total
3.5
(0.5)
4.1
0.6
3.5
Note: Chemical Business sales include intersegment transactions.
Global Consumer Care BusinessSales increased 2.1% compared with the same period a year earlier to 928.9 billion yen. Currency translation accounted for a 0.4% decrease and sales increased 2.5% on a like-for-like basis (breakdown of the increase: 1.8% increase by volume, 0.7% increase by price).
Globally, amid an ongoing consumer orientation toward low prices, demand for products that offer practicality and high added value was firm. In Japan, although widespread wage increases and inbound demand supported the economy, consumer behavior tended to remain cautious due to the impact of rising prices. Under these circumstances, the Kao Group continued to improve its earning power while working to build a foundation for global sales expansion toward profitable growth by offering high-value-added products and increasing selling prices to reflect that added value, among other measures.
In Japan, sales increased 4.8% to 617.8 billion yen.
In Asia, sales decreased 3.6% to 155.6 billion yen. On a like-for-like basis, sales decreased 2.3%.
In the Americas, sales decreased 4.3% to 89.2 billion yen. On a like-for-like basis, sales decreased 1.7%. In Europe, sales increased 0.2% to 66.4 billion yen. On a like-for-like basis, sales decreased 0.7%.
Operating income increased 14.8 billion yen compared with the same period a year earlier to 91.4 billion yen, even with the impact of an increase in raw material prices, due to the contribution of increased sales volume and improved earning power.
Note: The Kao Group's Global Consumer Care Business consists of the Hygiene Living Care Business, the Health Beauty Care Business, the Cosmetics Business, and the Business Connected Business.
Hygiene Living Care Business
Sales increased 1.2% compared with the same period a year earlier to 397.9 billion yen. Currency translation accounted for a 0.3% decrease and sales increased 1.6% on a like-for-like basis (breakdown of the increase: 0.6% increase by volume, 0.9% increase by price). However, if the impact of the transfer of the pet care business conducted in June 2024 is also excluded, sales increased 2.2% on a like-for-like basis.
Sales of fabric and home care products increased 3.7% to 278.4 billion yen. Currency translation accounted for a 0.1% increase and sales increased 3.6% on a like-for-like basis (breakdown of the increase: 1.6% increase by volume, 2.0% increase by price).
Sales of fabric care products increased. In Japan, improved products in the Attack Antibacterial EX series of laundry detergents, among other products, contributed to increased sales and market share expansion, due in part to the effect of price increases along with their enhanced value.
Sales of home care products increased due to strong performance by improved dishwashing detergents and other products in Japan.
Operating income for fabric and home care products increased 3.8 billion yen to 51.6 billion yen.
Sales of sanitary products decreased 4.1% to 119.5 billion yen. Currency translation accounted for a 1.3% decrease and sales decreased 2.8% on a like-for-like basis (breakdown of the decrease: 1.5% decrease by volume, 1.2% decrease by price). However, if the impact of the transfer of the pet care business conducted in June 2024 is also excluded, sales decreased 1.0% on a like-for-like basis.
Sales of Laurier sanitary napkins increased. In China, sales were strong due to the continued success of loyalty marketing. Sales of Merries baby diapers increased in Japan but decreased in Asia due to aggressive competition and other factors.
Operating income for sanitary products was 6.1 billion yen, a decrease of 0.2 billion yen. However, excluding the impact of the transfer of the pet care business conducted in June 2024, operating income increased 4.0 billion yen.
Operating income for the Hygiene Living Care Business increased 3.5 billion yen compared with the same period a year earlier to 57.7 billion yen. However, excluding the impact of the transfer of the pet care business conducted in June 2024, operating income increased 7.8 billion yen.
Health Beauty Care Business
Sales increased 2.3% compared with the same period a year earlier to 321.8 billion yen. Currency translation accounted for a 0.7% decrease and sales increased 3.0% on a like-for-like basis (breakdown of the increase: 2.7% increase by volume, 0.2% increase by price).
Sales of skin care products increased. Sales increased in Japan due to the growth of UV care products and seasonal sheet-type products but decreased in the Americas due to the impact of competition on the JERGENS skin care brand, among other factors.
Sales of hair care products increased substantially. In Japan, in addition to high-priced hair care brands launched in 2024, new product MEMEME sold strongly. Among products for hair salons in the Americas and Europe, ORIBE for high-end hair salons performed strongly but sales of GOLDWELL decreased due to the impact of factors including worsening business sentiment in the United States and Europe.
Sales of personal health products increased. Sales of PureOra Carbonic Acid Toothpaste remained strong in Japan and sales of improved MegRhythm thermo products grew in Japan and China.
Operating income increased 3.9 billion yen compared with the same period a year earlier to 29.6 billion yen. However, excluding the impact of structural reform expenses at subsidiaries in the Americas and Europe in the same period a year earlier, operating income increased 0.2 billion yen.
Cosmetics Business
Sales increased 4.6% compared with the same period a year earlier to 181.2 billion yen. Currency translation accounted for a 0.3% decrease and sales increased 4.9% on a like-for-like basis (breakdown of the increase: 4.0% increase by volume, 0.9% increase by price).
Sales in Japan increased. Continued strong sales of the Kao Group's six focus brands, including the Curél derma care brand, the KANEBO prestige skincare and makeup brand, the SOFINA iP skin care brand, and the SENSAI luxury brand, which captured inbound demand, contributed to the ongoing increase in sales. Sales in Asia also increased. In China, sales increased substantially due to strong performance by freeplus, which is hypoallergenic and contains Japanese and Chinese botanical extracts, in addition to the absence of the restrictions on shipments implemented by the Kao Group in the same period a year earlier to optimize distribution inventory. In Thailand, where the Kao Group is focusing its efforts, the progress of KANEBO and the KATE makeup brand exceeded the plan. In Europe, SENSAI and MOLTON BROWN performed well and the Kao Group stepped up its rollout of Curél.
Operating income was 3.0 billion yen, an increase of 10.9 billion yen from the same period a year earlier due to the substantial contribution to improved profits from concentrated investment in the six focus brands and business streamlining, among other factors.
Business Connected Business
Sales decreased 4.2% compared with the same period a year earlier to 28.0 billion yen. Currency translation accounted for a 0.0% decrease and sales decreased 4.2% on a like-for-like basis (breakdown of the decrease: 5.3% decrease by volume, 1.2% increase by price). However, if the impact of the transfer of the beverage business conducted in August 2024 is also excluded, sales increased 1.6% on a like-for-like basis.
Sales of commercial-use hygiene products increased. Although products for the medical sector were affected by price competition, demand continued to rise for kitchen cleaning agents and guest room amenities in the food service, lodging, and leisure sectors due to firm market conditions.
Operating income decreased 3.6 billion yen compared with the same period a year earlier to 1.2 billion yen. However, excluding the impact of the transfer of the beverage business conducted in August 2024, operating income increased 2.7 billion yen.
Chemical BusinessSales increased 7.6% compared with the same period a year earlier to 336.9 billion yen. Currency translation accounted for a 0.8% decrease and sales increased 8.5% on a like-for-like basis (breakdown of the increase: 2.7% decrease by volume, 11.2% increase by price).
In oleo chemicals, although differences in demand emerged in each region, sales increased due to the substantial contribution from selling price adjustments implemented in response to rising prices for fat and oil raw materials.
In performance chemicals, despite a slump in the automobile-related sector and other target markets, sales were on par with the same period a year earlier due to the contribution from the effects of selling price adjustments.
In information materials, sales grew as a result of steadily capturing ongoing firm demand in the semiconductor-related, hard disk, and other target sectors.
Operating income decreased 3.0 billion yen compared with the same period a year earlier to 22.9 billion yen due to factors including a decline in demand in some target sectors and the impact of fluctuating raw material prices.
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-
Description of Financial Position Consolidated Financial Position
(Billions of yen, except per share amounts)
December 31,
September 30,
Incr./(Dcr.)
2024
2025
Total assets
1,867.2
1,791.8
(75.4)
Total liabilities
768.4
734.3
(34.1)
Total equity
1,098.8
1,057.5
(41.3)
Ratio of equity attributable to owners of the parent
57.1%
57.4% -
to total assets
Equity attributable to owners of the parent per
2,296.69
2,245.81
(50.88)
share (Yen)
Bonds and borrowings 131.1
131.1
0.0
Total assets decreased 75.4 billion yen from December 31, 2024, to 1,791.8 billion yen. The principal increase in assets was a 21.1 billion yen increase in inventories. The principal decreases in assets were a
71.8 billion yen decrease in cash and cash equivalents and a 10.2 billion yen decrease in trade and other receivables.
Total liabilities decreased 34.1 billion yen from December 31, 2024, to 734.3 billion yen. The principal decrease in liabilities was a 15.3 billion yen decrease in trade and other payables.
Total equity decreased 41.3 billion yen from December 31, 2024, to 1,057.5 billion yen. The principal increase in equity was net income totaling 84.9 billion yen. The principal decreases in equity were dividends totaling 72.7 billion yen, repurchases of the Company's stock totaling 41.7 billion yen pursuant to a resolution of the Board of Directors at a meeting held on August 6, 2025, and exchange differences on translation of foreign operations totaling 12.2 billion yen.
The ratio of equity attributable to owners of the parent to total assets was 57.4% compared with 57.1% at December 31, 2024.
- Description of Information on Outlook, Including Forecasts of Consolidated Results
To successfully execute its Mid-term Plan K27, the Kao Group is improving its earning power while building a foundation for global sales expansion toward profitable growth, and progress was as planned for the nine months ended September 30, 2025.
Despite expectations of an uncertain business environment in the fourth quarter, including the impact of high prices and an intensifying competitive environment outside Japan, there is no change from the forecast of consolidated results announced on August 6, 2025.
The main exchange rates used in the forecast of consolidated results are one U.S. dollar to 149 yen, one euro to 168 yen, and one Chinese yuan to 20.6 yen.
-
Description of Operating Results
-
Condensed Consolidated Financial Statements and Notes
-
Condensed Consolidated Statement of Financial Position
Kao Corporation and Consolidated Subsidiaries As of September 30, 2025
(Millions of yen)
December 31, 2024
September 30, 2025
Change
Assets
Current assets
Cash and cash equivalents
357,713
285,880
(71,833)
Trade and other receivables
238,077
227,840
(10,237)
Inventories
274,628
295,679
21,051
Other financial assets
10,525
5,623
(4,902)
Income tax receivables
5,467
6,192
725
Other current assets
26,053
26,813
760
Subtotal
912,463
848,027
(64,436)
Non-current assets held for sale
1,562
2,232
670
Total current assets
914,025
850,259
(63,766)
Non-current assets
Property, plant and equipment
423,251
426,406
3,155
Right-of-use assets
116,637
108,272
(8,365)
Goodwill
228,413
225,188
(3,225)
Intangible assets
81,947
77,426
(4,521)
Investments accounted for using the equity method
14,526
14,843
317
Other financial assets
28,132
28,332
200
Deferred tax assets
49,044
49,485
441
Other non-current assets
11,262
11,587
325
Total non-current assets
953,212
941,539
(11,673)
Total assets
1,867,237
1,791,798
(75,439)
(Millions of yen)
December 31, 2024
September 30, 2025
Change
Liabilities and equity
Liabilities
Current liabilities
Trade and other payables
258,035
242,736
(15,299)
Bonds and borrowings
35,749
25,857
(9,892)
Lease liabilities
20,146
20,287
141
Other financial liabilities
7,280
4,249
(3,031)
Income tax payables
20,984
25,981
4,997
Provisions
2,773
1,451
(1,322)
Contract liabilities
43,878
44,005
127
Other current liabilities
120,755
112,470
(8,285)
Total current liabilities
509,600
477,036
(32,564)
Non-current liabilities
Bonds and borrowings
95,310
105,225
9,915
Lease liabilities
94,123
86,304
(7,819)
Other financial liabilities
6,370
6,647
277
Retirement benefit liabilities
39,460
37,064
(2,396)
Provisions
8,223
7,503
(720)
Deferred tax liabilities
9,754
9,003
(751)
Other non-current liabilities
5,562
5,522
(40)
Total non-current liabilities
258,802
257,268
(1,534)
Total liabilities
768,402
734,304
(34,098)
Equity
Share capital
85,424
85,424
-
Capital surplus
106,256
106,310
54
Treasury shares
(5,924)
(47,299)
(41,375)
Other components of equity
132,239
122,328
(9,911)
Retained earnings
748,781
762,500
13,719
Equity attributable to owners of the parent
1,066,776
1,029,263
(37,513)
Non-controlling interests
32,059
28,231
(3,828)
Total equity
1,098,835
1,057,494
(41,341)
Total liabilities and equity
1,867,237
1,791,798
(75,439)
-
Condensed Consolidated Statement of Income
Kao Corporation and Consolidated Subsidiaries Nine months ended September 30, 2025
(Millions of yen)
Nine months ended September 30,
2024
Nine months ended September 30,
2025
Change
Notes
Net sales
1
1,190,011
1,232,034
42,023
Cost of sales
(730,725)
(750,699)
(19,974)
Gross profit
459,286
481,335
22,049
Selling, general and administrative expenses
2
(363,737)
(367,336)
(3,599)
Other operating income
24,040
13,346
(10,694)
Other operating expenses
(18,534)
(12,478)
6,056
Operating income
1
101,055
114,867
13,812
Financial income
3,747
4,369
622
Financial expenses
(3,543)
(2,631)
912
Share of profit in investments accounted for using the equity
method
2,757
2,807
50
Income before income taxes
104,016
119,412
15,396
Income taxes
(31,099)
(34,511)
(3,412)
Net income
72,917
84,901
11,984
Attributable to:
Owners of the parent
71,027
84,719
13,692
Non-controlling interests
1,890
182
(1,708)
Net income
72,917
84,901
11,984
Earnings per share
Basic (Yen)
152.85
182.64
Diluted (Yen)
-
-
-
Condensed Consolidated Statement of Comprehensive Income
Kao Corporation and Consolidated Subsidiaries Nine months ended September 30, 2025
(Millions of yen)
Nine months ended September 30,
2024
Nine months ended September 30,
2025
Change
Net income
72,917
84,901
11,984
Other comprehensive income
Items that will not be reclassified to profit or loss:
Net gain (loss) on revaluation of
financial assets measured at fair value through other comprehensive income
1,050
503
(547)
Remeasurements of defined benefit plans
-
(28)
(28)
Share of other comprehensive income of investments accounted for using the
equity method
318
855
537
Total of items that will not be reclassified to profit or loss
1,368
1,330
(38)
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations
11,845
(12,195)
(24,040)
Share of other comprehensive income of investments accounted for using the
equity method
32
(307)
(339)
Total of items that may be reclassified subsequently to profit or loss
11,877
(12,502)
(24,379)
Other comprehensive income, net of taxes
13,245
(11,172)
(24,417)
Comprehensive income
86,162
73,729
(12,433)
Attributable to:
Owners of the parent
82,867
74,923
(7,944)
Non-controlling interests
3,295
(1,194)
(4,489)
Comprehensive income
86,162
73,729
(12,433)
-
Condensed Consolidated Statement of Changes in Equity
Kao Corporation and Consolidated Subsidiaries
Nine months ended September 30, 2024 (Millions of yen)
Equity attributable to owners of the parent
Other components of equity
Share capital
Capital surplus
Treasury shares
Exchange differences on translation of
foreign operations
Net gain (loss) on derivatives designated as cash flow
hedges
Net gain (loss) on revaluation of financial
assets measured at
fair value
through other com-
prehensive
income
January 1, 2024
85,424
105,780
(3,267)
77,448
10
6,461
Net income
-
-
-
-
-
-
Other comprehensive income
-
-
-
10,475
(4)
1,369
Comprehensive income
-
-
-
10,475
(4)
1,369
Disposal of treasury shares
-
(182)
189
-
-
-
Purchase of treasury shares
-
-
(2,838)
-
-
-
Share-based payment transactions
-
490
-
-
-
-
Dividends
-
-
-
-
-
-
Changes in the
ownership interest in subsidiaries
-
5
-
-
-
-
Transfer from other
components of equity to retained earnings
-
-
-
-
-
(217)
Total transactions with the owners
-
313
(2,649)
-
-
(217)
September 30, 2024
85,424
106,093
(5,916)
87,923
6
7,613
Equity attributable to owners of the parent
Other components of equity
Non-controlling interests
Remeasurements of defined benefit
plans
Retained earnings
Total equity
Total
Total
January 1, 2024
-
83,919
711,802
983,658
28,385
1,012,043
Net income
-
-
71,027
71,027
1,890
72,917
Other comprehensive income
-
11,840
-
11,840
1,405
13,245
Comprehensive income
-
11,840
71,027
82,867
3,295
86,162
Disposal of treasury shares
-
-
(7)
0
-
0
Purchase of treasury shares
-
-
-
(2,838)
-
(2,838)
Share-based payment transactions
-
-
-
490
-
490
Dividends
-
-
(70,169)
(70,169)
(1,001)
(71,170)
Changes in the ownership interest in subsidiaries
-
-
-
5
(16)
(11)
Transfer from other
components of equity to retained earnings
-
(217)
217
-
-
-
Total transactions with the owners
-
(217)
(69,959)
(72,512)
(1,017)
(73,529)
September 30, 2024
-
95,542
712,870
994,013
30,663
1,024,676
Nine months ended September 30, 2025 (Millions of yen)
Equity attributable to owners of the parent
Other components of equity
Share capital
Capital surplus
Treasury shares
Exchange differences on translation of
foreign operations
Net gain (loss) on derivatives designated as cash flow
hedges
Net gain (loss) on revaluation of financial
assets measured at
fair value
through other com-
prehensive
income
January 1, 2025
85,424
106,256
(5,924)
124,321
6
7,912
Net income
-
-
-
-
-
-
Other comprehensive income
-
-
-
(11,129)
2
1,359
Comprehensive income
-
-
-
(11,129)
2
1,359
Disposal of treasury shares
-
(320)
363
-
-
-
Purchase of treasury shares
-
(0)
(41,738)
-
-
-
Share-based payment transactions
-
496
-
-
-
-
Dividends
-
-
-
-
-
-
Changes in the ownership interest in subsidiaries
-
(122)
-
-
-
-
Transfer from other
components of equity to retained earnings
-
-
-
-
-
(143)
Total transactions with the owners
-
54
(41,375)
-
-
(143)
September 30, 2025
85,424
106,310
(47,299)
113,192
8
9,128
Equity attributable to owners of the parent
Other components of equity
Non-controlling interests
Remeasurements of defined benefit
plans
Retained earnings
Total equity
Total
Total
January 1, 2025
-
132,239
748,781
1,066,776
32,059
1,098,835
Net income
-
-
84,719
84,719
182
84,901
Other comprehensive income
(28)
(9,796)
-
(9,796)
(1,376)
(11,172)
Comprehensive income
(28)
(9,796)
84,719
74,923
(1,194)
73,729
Disposal of treasury shares
-
-
(42)
1
-
1
Purchase of treasury shares
-
-
-
(41,738)
-
(41,738)
Share-based payment transactions
-
-
-
496
-
496
Dividends
-
-
(71,073)
(71,073)
(1,663)
(72,736)
Changes in the
ownership interest in subsidiaries
-
-
-
(122)
(971)
(1,093)
Transfer from other
components of equity to retained earnings
28
(115)
115
-
-
-
Total transactions with the owners
28
(115)
(71,000)
(112,436)
(2,634)
(115,070)
September 30, 2025
-
122,328
762,500
1,029,263
28,231
1,057,494
-
Condensed Consolidated Statement of Cash Flows
Kao Corporation and Consolidated Subsidiaries Nine months ended September 30, 2025
(Millions of yen)
Nine months ended September 30,
2024
Nine months ended September 30,
2025
Cash flows from operating activities
Income before income taxes
104,016
119,412
Depreciation and amortization
66,427
63,997
Gain on transfer of business
(10,590)
-
Interest and dividend income
(3,518)
(2,633)
Interest expense
2,020
1,820
Share of profit in investments accounted for using the equity method
(2,757)
(2,807)
(Gains) losses on sale and disposal of property, plant and equipment, and intangible assets
1,899
2,213
(Increase) decrease in trade and other receivables
19,654
9,559
(Increase) decrease in inventories
(3,103)
(22,315)
Increase (decrease) in trade and other payables
(2,563)
(12,287)
Increase (decrease) in retirement benefit liabilities
(2,318)
(2,831)
Increase (decrease) in provisions
(10,640)
(2,024)
Other
(5,410)
(11,608)
Subtotal
153,117
140,496
Interest received
3,370
2,512
Dividends received
2,270
3,377
Interest paid
(1,708)
(2,000)
Income taxes paid
(25,143)
(31,126)
Net cash flows from operating activities
131,906
113,259
Cash flows from investing activities
Payments into time deposits
(9,319)
(7,272)
Proceeds from withdrawal of time deposits
7,980
11,541
Purchase of property, plant and equipment
(41,799)
(50,329)
Proceeds from sale of property, plant and equipment
5,086
87
Purchase of intangible assets
(6,454)
(6,389)
Proceeds from transfer of business
11,783
-
Other
2,328
269
Net cash flows from investing activities
(30,395)
(52,093)
Cash flows from financing activities
Increase (decrease) in short-term borrowings
(13,404)
90
Proceeds from long-term borrowings
10,000
10,000
Repayments of long-term borrowings
(7)
(10,014)
Proceeds from issuance of bonds
-
24,939
Redemption of bonds
(12)
(24,951)
Repayments of lease liabilities
(16,143)
(16,658)
Purchase of treasury shares
(2,838)
(41,738)
Dividends paid to owners of the parent
(69,625)
(70,625)
Dividends paid to non-controlling interests
(1,021)
(1,667)
Other
70
(940)
Net cash flows from financing activities
(92,980)
(131,564)
Net increase (decrease) in cash and cash equivalents
8,531
(70,398)
Cash and cash equivalents at the beginning of the period
291,663
357,713
Effect of exchange rate changes on cash and cash equivalents
4,268
(1,435)
Cash and cash equivalents at the end of the period
304,462
285,880
-
Notes to Condensed Consolidated Financial Statements
Segment Information
Summary of Reportable Segments
The Kao Group's reportable segments are the components of the Kao Group for which discrete financial information is available and are regularly reviewed by the Board of Directors in deciding how to allocate resources and in assessing their performance. Net sales and operating income are the key measures used by the Board of Directors to evaluate the performance of each segment.
The Kao Group is organized on the basis of five businesses: the four business areas that constitute the Global Consumer Care Business (the Hygiene Living Care Business, the Health Beauty Care Business, the Cosmetics Business, and the Business Connected Business) and the Chemical Business. In each business, the Kao Group plans comprehensive business strategies and carries out business activities on a global basis.
Accordingly, the Kao Group has five reportable segments: the Hygiene Living Care Business, the Health Beauty Care Business, the Cosmetics Business, the Business Connected Business, and the Chemical Business.
Due to a change in organization as of January 1, 2025, the Kao Group reclassified its five former
reportable segments (the Hygiene and Living Care Business, the Health and Beauty Care Business, the Life Care Business, the Cosmetics Business, and the Chemical Business) into the above-noted five reportable segments (the Hygiene Living Care Business, the Health Beauty Care Business, the Cosmetics Business, the Business Connected Business, and the Chemical Business) from the three months ended March 31, 2025. Segment information for the same period a year earlier has been
restated to reflect the reclassification.
Major products by reportable segment are as follows:
Reportable segments
Major products
Global Consumer Care Business
Hygiene Living Care Business
Fabric care products
Laundry detergents, fabric treatments
Home care products
Kitchen cleaning products, house cleaning products,
paper cleaning products
Sanitary products
Sanitary napkins, baby diapers
Health Beauty Care Business
Skin care products
Soaps, facial cleansers, body cleansers, UV care
products
Hair care products
Shampoos, conditioners, hair styling agents, hair
coloring agents, men's products
Personal health
products
Bath additives, oral care products, thermo products
Cosmetics
Business
Cosmetics
Counseling cosmetics, self-selection cosmetics
Business Connected
Business
Commercial-use hygiene products,
life care products
Commercial-use hygiene products, life care products
Chemical Business
Oleo chemicals
Oleochemicals, fat and oil derivatives, surfactants
and blending products, fragrances
Performance chemicals
Water-reducing admixture for concrete, casting sand binders, plastics additives, process chemicals
for various industries
Information materials
Toners/Toner binders, inkjet ink colorants, ink, fine polishing agents and cleaner for hard disk,
materials and process chemicals for semiconductor
Sales and Results of Reportable Segments Nine months ended September 30, 2024
Reportable segments Global Consumer Care Business
(Millions of yen)
Hygiene
Health
Business
Chemical
Reconciliation1 Consolidated
Living Care Beauty Care Cosmetics Connected Subtotal Business Total
Business
Business
Business
Business
Net sales
Sales to customers 393,012 314,704 173,156 29,183 910,055 279,956 1,190,011 － 1,190,011
Intersegment sales and transfers2
－ － － － － 33,050 33,050 (33,050) －
Total net sales 393,012 314,704 173,156 29,183 910,055 313,006 1,223,061 (33,050) 1,190,011
Operating income (loss)
54,157 25,612 (7,902) 4,730 76,597 25,922 102,519 (1,464) 101,055
Financial income 3,747
Financial expenses (3,543)
Share of profit in
investments accounted for using the equity method
Income before income taxes
Notes:
2,757
104,016
The operating income (loss) reconciliation of (1,464) million yen includes corporate expenses not allocated to reportable segments, as well as elimination of intersegment inventory transactions.
Intersegment sales and transfers are mainly calculated based on market price and manufacturing cost.
Nine months ended September 30, 2025
Reportable segments Global Consumer Care Business
(Millions of yen)
Hygiene
Health
Business
Chemical
Reconciliation1 Consolidated
Living Care Beauty Care Cosmetics Connected Subtotal Business Total
Business
Business
Business
Business
Net sales
Sales to customers 397,901 321,834 181,191 27,962 928,888 303,146 1,232,034 － 1,232,034
Intersegment sales
and transfers2 － － － － － 33,787 33,787 (33,787) －
Total net sales 397,901 321,834 181,191 27,962 928,888 336,933 1,265,821 (33,787) 1,232,034
Operating income (loss)
57,697 29,558 2,972 1,157 91,384 22,873 114,257 610 114,867
Financial income 4,369
Financial expenses (2,631)
Share of profit in
investments accounted for using the equity method
Income before income taxes
2,807
119,412
Notes:
The operating income (loss) reconciliation of 610 million yen includes corporate expenses not allocated to reportable segments, as well as elimination of intersegment inventory transactions.
Intersegment sales and transfers are mainly calculated based on market price and manufacturing cost.
Selling, General and Administrative Expenses
Selling, general and administrative expenses consist of the following:
(Millions of yen)
Nine months ended
September 30, 2024
Nine months ended
September 30, 2025
Advertising
61,840
64,114
Sales promotion
37,330
40,362
Employee benefits
132,306
132,264
Depreciation
12,733
11,525
Amortization
8,424
8,687
Research and development
46,448
45,900
Other
64,656
64,484
Total
363,737
367,336
- Note regarding Assumption of Going Concern
-
Condensed Consolidated Statement of Financial Position
None applicable.