Unicharm : The First Quarter(From Jan 1, 2026 to Mar 31, 2026)Consolidated Financial Results

Published May 8, 2026 at 7:45 a.m. UTC

Source: MarketScreener

This notice has been translated from the original Japanese text of the timely disclosure statement dated May 8, 2026 and is for reference purposes only. In the event of any discrepancy between the original Japanese and this translation, the Japanese text shall prevail.

CAUTIONS REGARDING FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements, such as Unicharm Corporation's current plans, strategies, and future performance. These forward-looking statements are based on judgments obtained from currently available information. Please be advised that, for a variety of reasons, actual results may differ materially from those discussed in the forward-looking statements. Events that might affect actual results include, but are not limited to, economic circumstances in which Unicharm Corporation operates, competitive pressures, relevant regulations, changes in product development, and fluctuations in currency exchange rates.

Consolidated Financial Results

for the Three Months Ended March 31, 2026; Flash Report [IFRS]

May 8, 2026

Listed Company Name: Unicharm Corporation

Listing: Tokyo Stock Exchange

Code Number: 8113

URL: https://www.unicharm.co.jp/

Company Representative: Takahisa Takahara, Representative Director, President and Chief Executive Officer

Contact Person: Hirotatsu Shimada, Senior Managing Executive Officer, General Manager of Accounting Control and Finance Division

Telephone Number: +81-3-3451-5111

Scheduled Date to Commence Dividend Payments: -

Preparation of Supplementary Material on Financial Results: Yes

Holding of Financial Results Presentation Meeting: Yes (For Securities Analysts and Institutional Investors)

(Amounts are rounded to the nearest million yen)

Consolidated Financial Results for the Three Months Ended March 31, 2026 (January 1, 2026 through March 31, 2026)

Consolidated financial results (Q1 cumulative total)

(Figures in percentage represent increases or decreases from the same period last year)

	Net Sales		Core Operating Income		Profit Before Tax		Profit for the Period		Profit Attributable to Owners of Parent		Total Comprehensive Income
	Millions of Yen 234,185 227,520	%	Millions of Yen 31,479 29,018	%	Millions of Yen 31,391 34,946	%	Millions of Yen 23,350 27,464	%	Millions of Yen 19,758 24,908	%	Millions of Yen 27,995 1,286	%
Three Months Ended March 31, 2026		2.9		8.5		(10.2)		(15.0)		(20.7)		-
Three Months Ended March 31, 2025		(3.7)		(22.7)		0.7		27.7		39.7		(97.1)

	Basic Earnings Per Share	Diluted Earnings Per Share
	Yen		Yen
Three Months Ended March 31, 2026	11.40	-
Three Months Ended March 31, 2025	14.18	-

(Note) Core operating income information is a valuable benchmark for measuring the Group's recurring business performance. It is calculated by deducting selling, general and administrative expenses from gross profit.

Consolidated financial position

	Total Assets	Total Equity	Equity Attributable to Owners of Parent	Ratio of Equity Attributable to Owners of Parent
	Millions of Yen	Millions of Yen	Millions of Yen	%
As of March 31, 2026	1,188,908	883,281	783,666	65.9
As of December 31, 2025	1,223,176	891,259	794,705	65.0

Cash Dividends

	Annual Dividends
	1st Q-End	2nd Q-End	3rd Q-End	Year-End	Total
Fiscal Year Ended December 31, 2025 Fiscal Year Ending December 31, 2026	Yen - -	Yen 9.00	Yen -	Yen 9.00	Yen 18.00
	Yen - -
Fiscal Year Ending December 31, 2026 (forecast)		11.00	-	11.00	22.00

(Note) Changes in dividend forecasts recently disclosed: None

Forecast of Consolidated Financial Results for the Fiscal Year Ending December 31, 2026 (January 1, 2026 through December 31, 2026)

(Figures in percentage represent increases or decreases from the previous fiscal year)

Net Sales

Core Operating Income

Profit Before Tax

Profit Attributable to Owners of Parent

Basic Earnings Per Share

Full Year

Millions of Yen

1,010,000

6.8

Millions of Yen

136,000

24.9

Millions of Yen

135,800

28.9

Millions of Yen

86,500

32.6

Yen

50.26

(Note) Changes in results forecasts recently disclosed: None

* Notes

Significant changes in the scope of consolidation during the period: None
Changes in accounting policies and accounting estimates
1. Changes in accounting policies required by IFRS: None
2. Changes in accounting policies other than item (i) above: None
3. Changes in accounting estimates: None
Number of issued and outstanding shares (common shares)
1. Number of issued and outstanding shares as of end of period (including treasury shares): As of March 31, 2026: 1,862,502,957 shares
  As of December 31, 2025: 1,862,502,957 shares
2. Number of treasury shares as of end of period:
  As of March 31, 2026: 141,404,537 shares
  As of December 31, 2025: 122,577,638 shares
3. Average number of shares during the period (accumulated total):

Three Months Ended March 31, 2026: 1,733,049,494 shares

Three Months Ended March 31, 2025: 1,756,848,927 shares

Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an auditing firm: None
Explanation regarding proper use of the forecasts of financial results and other notes
Forecasts stated herein are based on the currently available information and the Company's assumptions that were judged to be valid as of the announcement date hereof, and are not intended to be a promise by the Company to achieve these forecasts. Therefore, actual results may differ for various factors. Please refer to "1. Overview of the Operating Results, Etc., (3) Explanation of future estimate information such as forecast of consolidated financial results" section on page 6 for more information concerning the assumptions used for forecasts of financial results and other notes on proper use.
Contents of Exhibit
1. Overview of the Operating Results, Etc 2
  1. Overview of the operating results for the fiscal period under review 2
  2. Overview of the financial position for the fiscal period under review 5
  3. Explanation of future estimate information such as forecast of consolidated financial results 6
2. Condensed Consolidated Financial Statements and Significant Notes Thereto 7
  1. Condensed consolidated statement of financial position 7
  2. Condensed consolidated statement of income and Condensed consolidated statement of comprehensive income 9
  3. Condensed consolidated statement of changes in equity 11
  4. Condensed consolidated statement of cash flows 12
  5. Notes to the condensed consolidated financial statements 14
    1. Notes regarding going concern assumptions 14
    2. Material accounting policies 14
    3. Segment information 14
    4. Selling, general and administrative expenses 16
    5. Other income 16

Overview of the Operating Results, Etc.
1. Overview of the operating results for the fiscal period under review
  During the three months ended March 31, 2026 (from January 1, 2026, to March 31, 2026), which commenced the first year of the 13th Mid-term Management Plan, the Company focused its efforts on strengthening its management foundation and implementing key strategies aimed at sustainable growth. Meanwhile, uncertainty continues to cloud the operating environment surrounding the Group due to rising geopolitical risks, including exchange rate fluctuations driven by monetary policy trends in the United States, as well as concerns over soaring energy prices and logistical disruptions resulting from the escalating tensions in the Middle East.
  In this environment and under the banner of its corporate brand essence, "Love Your Possibilities," the Group has promoted initiatives aimed at the development of a "Cohesive Society" in which people support one another with a compassionate and altruistic spirit, believing in the unlimited untapped potential contained within everybody.
  In Asia, due to a deterioration in economic sentiment, consumers' cost-consciousness has increased, leading to a continued trend of trading down for some baby care products. In the Chinese market, profitability is improving despite impacts from strategic upfront investments in emerging e-commerce platforms and intensifying competition. Signs of recovery are beginning to emerge in the performance after its bottoming out, indicating a steady trend of progress.
  In Japan, the Company's market share has remained steady, despite a challenging consumer environment due to heightened awareness of personal financial protection amid inflation. This is because the products the Company handles are daily necessities, and the wide-ranging lineup of these products has effectively captured the diverse needs of consumers.
  As a result, net sales, core operating income, profit before tax, profit for the period, and profit attributable to owners of parent in the three months ended March 31, 2026 reached ¥234,185 million (up 2.9% year on year),
  ¥31,479 million (up 8.5% year on year), ¥31,391 million (down 10.2% year on year), ¥23,350 million (down 15.0% year on year), and ¥19,758 million (down 20.7% year on year), respectively.
  Financial results by segment are as described below.
  1. Personal Care Business
    - Wellness Care Business
      Looking at overseas markets, in countries in the Southeast Asian region such as Thailand, Indonesia, and Vietnam, where demand for adult excretion care products is rising, the Company continued to expand its product lineup and promote the Japanese care model by using both pad-type products and disposable underwear. Also, in China, the population is aging even faster than in Japan and there is a large target market. However, awareness of high-quality and high value-added specialized products is still low, and many people make do with alternatives such as using bed sheets. Considering these circumstances, the lineup of light incontinence products has been expanded to make it easier for customers to appreciate the unique value of these specialized products. In addition, the Company has leveraged social media to proactively promote the comfort and convenience of its products and raise awareness of the entire category, while also aggressively investing management resources as part of its ongoing marketing strategy to drive business growth.
      In Japan, under the concept of "Increasing the things you can do, one at a time," the Company maintains the No. 1 market share as a result of developing a wide range of products in line with ADL*1, focusing primarily on light to moderate incontinence products such as pants-type disposable diapers and paper pants pads, that help extend healthy life expectancy. Additionally, we continued to provide product information and knowledge for users and caregivers through services such as the AI chatbot Charm-san, which supports product selection tailored to users, and Incontinent adult diaper counseling. Furthermore, the Company contributed to addressing social issues by enhancing product functionality while considering the environment, working with local governments to promote the development of recycling models centered on Lifree Nobiru Fit® Thin Lightweight Tape-on RefF, which utilizes recycled pulp from used disposable diapers as part of its raw materials.
      In the mask category, the Company revitalized the market with its diverse product lineup in both the Cho-kaiteki and Cho-rittai brands in line with demand of spring pollen season. The Company will continue to aim to expand its market share by continuously launching new products to meet consumer needs.
      *1 An abbreviation for Activities of Daily Living, an indicator of the level of nursing care provided to those being cared for, which represents the basic activities necessary for daily living, such as excretion, eating, and bathing
    - Feminine Care Business
      Overseas, we responded to consumer needs with a unique and wide-ranging product lineup such as cooling sanitary napkins and shorts-shaped napkins.
      In China, where a cost-conscious attitude persists, particularly among young people, due to uncertainty about the economic outlook, sales progressed as planned during the International Women's Day sales campaign on March 8. In addition, in response to concerns regarding the quality of sanitary products and waste management circulating in some media reports in November 2024 and March and October 2025, the Company promptly communicated its strict quality control system and the safety and reliability of its products via social media and other channels, in an effort to preserve and enhance its brand value.
      In the Southeast Asian region, including Thailand, Indonesia, and Vietnam, the Company continued to expand the offering of high value-added products, including cooling sanitary napkins and activated charcoal blended sanitary napkins, while endeavoring to further boost sales through the use of live commerce and increased visibility on e-commerce platforms.
      In India, where the penetration rate of sanitary products is low, we introduced products based on the concept of antibacterial care, mainly in urban areas, along with more accessible options tailored to local usage and price sensitivity, such as flat-type products without individual packaging or folding. This initiative aimed to expand the number of stores selling our products. As a result, we achieved strong sales growth.
      In the Middle East, although there were concerns about supply chain disruptions and delays in exports to certain regions due to deteriorating conditions stemming from regional conflicts, sales remained steady thanks to aggressive investments in marketing, such as the promotion of products containing olive oil that have been tailored to local customs.
      In Japan, despite a decrease in the target population, the Company maintains the No. 1 market share by rolling out high value-added products that cater to the growing emphasis on health and peace of mind, as well as by proposing in-store displays and pursuing the strategy of continuous communication via social media. Furthermore, we are strengthening our engagement with consumers in the digital domain. We are also continuing to provide personalized information through the Sofy Be service, a menstrual and health management app, which focuses on hormonal changes. As the environment and values surrounding women change and lifestyles become more diverse, we continue to aim to maximize the lifetime value of women by providing comprehensive support not only during their menstrual periods but throughout the entirety of their daily lives. This empowers each woman to understand and manage her physical and mental state, thereby contributing to the improvement of her health and quality of life.
    - Baby Care Business
      Overseas, we promoted the use of our products, particularly our pants-type disposable diapers, which are one of our strengths, as well as the deployment of unique products. In India, where the use of disposable diapers is still low, even compared to other target countries, the Company continued to expand the sales areas and engage in awareness activities. Thus, our market share held a record-high level, sustaining a growth trend.
      In countries such as Indonesia, Thailand and Vietnam, amid intensifying price competition driven by the economic downturn, the Company promoted a two-brand strategy to serve both premium-conscious and price-conscious consumers. In the low-price segment in particular, we expanded our use of OEM suppliers to allow us to respond rapidly to market changes and roll out products in an agile manner while striving to build a supply system capable of flexibly adapting to shifts in the market environment.
      In Indonesia, fierce competition continues due to local companies strengthening their sales capabilities and launching aggressive pricing campaigns. In addition, the impact of shipment adjustments resulting from the review of contract terms and the restructuring of business partners, which were implemented incrementally in 2025 in response to deteriorating credit conditions among some distributors, has largely subsided, and sales for the current period are on track to recovery. Against this backdrop, the Company promoted strategic initiatives for both merchandise and sales, including the launch of the economy-type MamyPoko GEMBUNG, which remains thin even after extended use, and small packs that promote trial purchases, while also enhancing proposal capabilities through a strengthened sales structure.
      In Thailand, we implemented collaborations with popular characters to enhance brand awareness and public interest.
      In Saudi Arabia, as in the Feminine Care Business, exports to neighboring countries were partially affected by disruptions in the logistics network caused by the escalating tensions in the Middle East. However, products such as those containing olive oil that have been tailored to local customs continued to perform well. As a result, we achieved a record-high market share in Saudi Arabia*2.
      In Japan, while the market is shrinking with lower birth rates, we have continued to address diverse needs through the two brands, moony and MamyPoko, based on our business philosophy of "giving parents more enjoyment as they raise their babies." As a result, we maintained the No. 1 market share and achieved improved profitability.
      We also actively worked to improve consumer satisfaction and reduce environmental impact through both products and services. For example, nursery facilities that have introduced the Tebura Toen® (Hands-Free Commute)*3 service developed in collaboration with BABY JOB Inc., we promoted the introduction of the nursery facility-exclusive product that uses recycled pulp extracted from used paper diapers.
      As a result, net sales and segment profit (core operating income) for the personal care business for the fiscal period under review were ¥190,996 million (up 2.2% year on year) and ¥24,200 million (up 10.9% year on year), respectively.
      *2 NielsenIQ February 2026 Share of Sales
      *3 A flat-rate subscription service for nursery facilities designed to reduce the burden on both parents and childcare workers, including the need for parents to prepare disposable diapers and wipes, carry bulky items to the facility, and for childcare workers to manage disposable diapers and wipes.
  2. Pet Care Business
    In Japan, under the slogan "More together, forever together," which aims to create a "Cohesive Society" with pets, we are working to create a society where dogs and cats can live happy lives while staying connected to society. In the pet food business, we responded to the needs of consumers with a diverse lineup that addresses the growing demand among pet owners for their dogs and cats to enjoy a variety of textures and flavors, as well as increased health consciousness. For snacks for cats, high value-added products with added health benefits such as Silver Spoon Snacks that Make Cats Happy Kari-kari Rich Complete & Balanced Food Treats and Silver Spoon Treats Fish-flavored Cream Donuts Hair Balls Control*4 continued to enjoy high popularity. For dogs, we responded to diversifying needs, launching the "Matching" series in the Grand Deli Snack line, which replicates the appearance of popular human snacks so that owners can enjoy snack time together with their dogs, as well as a special flavor of Aiken Genki to commemorate the product line's 40th anniversary, with Aiken Genki with Hokkaido Cheese, Beef, and Green and Yellow Vegetables.
    In the pet toiletry business, the Company continued to build upon its rich lineup of products, ranging from the Deo-Toilet sand replacement line for system litter boxes to Cat-shaped Chip and Easy to Get Used To Small Grain Type made from natural wood, thereby responding attentively to the needs of pet owners seeking a clean and comfortable living environment for their cats.
    In addition, as part of our digital initiatives responding to diversifying purchasing behavior and information gathering using social media, we continue to leverage a variety of channels, including DOQAT, Food Matching (which utilizes AI), and our official store on the TikTok Shop. Through these platforms, we are strengthening our ties with consumers, growing brand awareness, and enhancing convenience to drive sustainable growth. On the other hand, growth in the Japanese pet market as a whole is tapering off due to consumers' increasing cost-consciousness. We will continue to carry out proactive promotions to drive market growth, stimulate demand and revitalize the market.
    In North America, as brisk sales of wet-type snacks for cats incorporating Japanese technology and new concepts continued, we also expanded our product lineup for the growing e-commerce market, achieving high net sales growth. Although the trajectory of tariff policy remains opaque, we are taking flexible measures tailored to the situation. We will continue to closely monitor the developments in local demand and tariff policies, responding flexibly to minimize any impact on our business performance.
    China, the second largest regional market after North America, is expected to continue growing. The Company entered into a capital and business alliance with Jiangsu Jijia Pet Products Co., Ltd. ("JIA
    PETS")*5 through its local Chinese subsidiary in November 2022, and began manufacturing pet food incorporating its unique concepts and technologies. Since then, the Company has introduced new products to revitalize the market and meet a wide range of needs. By continuing to leverage the combination of manufacturing technology and know-how on production management, which have been cultivated in Japan, with JIA PETS' production and R&D capacities, as well as sales capabilities in its e-commerce, the Company aims to achieve the No. 1 market share in the priority cities in China.
    Also, in the Southeast Asia region, where future market growth is expected, the Company aims to achieve dramatic business growth by proactively investing management resources in both food and toiletries in the emerging pet care markets in Thailand, Indonesia, and Vietnam, etc.
    As a result, net sales and segment profit (core operating income) for the pet care business for the fiscal period under review were ¥39,733 million (up 6.6% year on year) and ¥6,896 million (down 0.4% year on year), respectively.
    *4 Helps promote natural elimination along with stool through the power of dietary fiber.
    *5 An associate for using equity method.
  3. Other Businesses
    In the category of business-use products, comprising mainly of products utilizing the Company's core non-woven fabric and absorber processing and forming technology, we focused on promoting the sales of industrial materials.
    As a result, net sales and segment profit (core operating income) in other businesses for the fiscal period under review were ¥3,457 million (up 1.4% year on year) and ¥383 million (up 41.6% year on year), respectively.
2. Overview of the financial position for the fiscal period under review
  1. Status of assets, liabilities and equity (Assets)
    Total assets as of March 31, 2026 were ¥1,188,908 million (down 2.8% compared with the end of the previous fiscal year). The major decreases were ¥19,739 million in cash and cash equivalents and ¥15,920 million in trade and other receivables.
    (Liabilities)
    Total liabilities as of March 31, 2026 were ¥305,627 million (down 7.9% compared with the end of the previous fiscal year). The major decrease was ¥23,870 million in trade and other payables.
    (Equity)
    Total equity as of March 31, 2026 was ¥883,281 million (down 0.9% compared with the end of the previous fiscal year). The major increases were ¥19,758 million in profit attributable to owners of parent, ¥3,061 million in non-controlling interests, and 3,054 million in other components of equity mainly due to exchange differences on translation in foreign operations, and the major decrease was ¥18,451 million in increase in treasury shares.
    (Ratio of equity attributable to owners of parent)
    Ratio of equity attributable to owners of parent as of March 31, 2026 was 65.9%.
  2. Status of cash flows
    Cash and cash equivalents as of March 31, 2026 were ¥233,353 million, a decrease of ¥19,739 million from the end of the previous fiscal year. The respective cash flow positions for the three months ended March 31, 2026 were as follows:
    (Cash flows from operating activities)
    Net cash provided by operating activities was ¥29,806 million (¥28,445 million was provided in the same period of the previous fiscal year). The main inflow was due to profit before tax.
    (Cash flows from investing activities)
    Net cash used in investing activities was ¥13,740 million (¥32,567 million was provided in the same period of the previous fiscal year). The main inflow was due to proceeds from sale and redemption of financial assets, and the main outflow was due to purchase of financial assets.
    (Cash flows from financing activities)
    Net cash used in financing activities was ¥37,379 million (¥27,191 million was used in the same period of the previous fiscal year). The main outflows were due to payments for purchase of treasury shares and dividends paid to owners of parent.
3. Explanation of future estimate information such as forecast of consolidated financial results
Regarding forecast of full-year financial results, there were no changes from the announcement made on February 12, 2026.
Condensed Consolidated Financial Statements and Significant Notes Thereto

Condensed consolidated statement of financial position

(Millions of Yen)

	Notes	Fiscal Year Ended December 31, 2025 (as of December 31, 2025)	Three Months Ended March 31, 2026 (as of March 31, 2026)
Assets
Current assets
Cash and cash equivalents		253,092	233,353
Trade and other receivables		154,762	138,842
Inventories		123,344	120,109
Other current financial assets		100,279	102,314
Other current assets		10,167	13,737
Total current assets		641,644	608,355
Non-current assets
Property, plant and equipment		275,748	270,552
Intangible assets		97,059	95,337
Deferred tax assets		16,966	16,589
Investments accounted for using equity method		19,584	20,350
Other non-current financial assets		160,589	167,731
Other non-current assets		11,585	9,994
Total non-current assets		581,532	580,553
Total assets		1,223,176	1,188,908

(Millions of Yen)

	Notes	Fiscal Year Ended December 31, 2025 (as of December 31, 2025)	Three Months Ended March 31, 2026 (as of March 31, 2026)
Liabilities and equity
Liabilities
Current liabilities
Trade and other payables		221,583	197,713
Borrowings		3,488	3,014
Income tax payables		10,268	7,842
Other current financial liabilities		8,993	10,021
Other current liabilities		19,602	18,535
Total current liabilities		263,933	237,126
Non-current liabilities
Borrowings		7,567	7,431
Deferred tax liabilities		15,312	16,706
Retirement benefit liabilities		15,942	16,041
Other non-current financial liabilities		23,368	22,481
Other non-current liabilities		5,795	5,843
Total non-current liabilities		67,984	68,501
Total liabilities		331,917	305,627
Equity
Equity attributable to owners of parent
Capital stock		15,993	15,993
Share premium		11,582	11,654
Retained earnings		801,367	805,652
Treasury shares		(140,428)	(158,879)
Other components of equity		106,191	109,246
Total equity attributable to owners of parent		794,705	783,666
Non-controlling interests		96,554	99,615
Total equity		891,259	883,281
Total liabilities and equity		1,223,176	1,188,908

Condensed consolidated statement of income and Condensed consolidated statement of comprehensive income

(Condensed consolidated statement of income)

(Millions of Yen)

	Notes	Three Months Ended March 31, 2025 (January 1, 2025 - March 31, 2025)	Three Months Ended March 31, 2026 (January 1, 2026 - March 31, 2026)
Net sales Cost of sales	3	227,520 (138,955)	234,185 (141,144)
Gross profit Selling, general and administrative expenses	4	88,565 (59,547)	93,041 (61,562)
Other income	5	6,133	695
Other expenses		(417)	(376)
Financial income		2,411	2,060
Financial costs		(2,198)	(2,466)
Profit before tax		34,946	31,391
Income tax expenses		(7,482)	(8,041)
Profit for the period		27,464	23,350
Profit attributable to
Owners of parent		24,908	19,758
Non-controlling interests		2,557	3,592
Profit for the period		27,464	23,350
Earnings per share attributable to owners of parent
Basic earnings per share (Yen)		14.18	11.40
Diluted earnings per share (Yen)		-	-

Reconciliation of changes from gross profit to core operating income
Gross profit	88,565	(Millions of Yen) 93,041
Selling, general and administrative expenses	(59,547)	(61,562)
Core operating income	29,018	31,479

(Condensed consolidated statement of comprehensive income)

(Millions of Yen)

	Notes	Three Months Ended March 31, 2025 (January 1, 2025 - March 31, 2025)	Three Months Ended March 31, 2026 (January 1, 2026 - March 31, 2026)
Profit for the period Other comprehensive income, net of tax Items that will not be reclassified to profit or loss Net changes in equity instruments measured at fair value through other comprehensive income Remeasurements related to net defined benefit liabilities (assets) Subtotal Items that may be reclassified to profit or loss Net changes in debt instruments measured at fair value through other comprehensive income Changes in fair value of cash flow hedges Exchange differences on translation in foreign operations Share of other comprehensive income of investments accounted for using equity method Subtotal Total other comprehensive income, net of tax Total comprehensive income Total comprehensive income attributable to Owners of parent Non-controlling interests Total comprehensive income		27,464	23,350
		1,643	793
		80	13
		1,723	806
		(72)	(74)
		(8)	9
		(26,902)	3,266
		(920)	637
		(27,902)	3,838
		(26,179)	4,644
		1,286	27,995
		4,095	22,999
		(2,810)	4,995
		1,286	27,995

Condensed consolidated statement of changes in equity

Three Months Ended March 31, 2025 (January 1, 2025 - March 31, 2025)

(Millions of Yen)

	Notes	Equity attributable to owners of parent						Non-controlling interests	Total equity
	Notes	Capital stock	Share premium	Retained earnings	Treasury shares	Other components of equity	Total	Non-controlling interests	Total equity
Balance at January 1, 2025		15,993	11,405	766,342	(119,412)	98,734	773,062	100,649	873,711
Profit for the period		-	-	24,908	-	-	24,908	2,557	27,464
Other comprehensive income		-	-	-	-	(20,812)	(20,812)	(5,366)	(26,179)
Total comprehensive income		-	-	24,908	-	(20,812)	4,095	(2,810)	1,286
Purchase of treasury shares		-	-	-	(7,609)	-	(7,609)	-	(7,609)
Dividends		-	-	(12,900)	-	-	(12,900)	(4,180)	(17,080)
Share-based payment transactions		-	329	-	(28)	-	301	-	301
Transfer from other components of equity to retained earnings		-	-	272	-	(272)	-	-	-
Total transactions with owners		-	329	(12,628)	(7,637)	(272)	(20,208)	(4,180)	(24,388)
Balance at March 31, 2025		15,993	11,734	778,621	(127,049)	77,650	756,949	93,659	850,608

Three Months Ended March 31, 2026 (January 1, 2026 - March 31, 2026)

(Millions of Yen)

	Notes	Equity attributable to owners of parent						Non-controlling interests	Total equity
	Notes	Capital stock	Share premium	Retained earnings	Treasury shares	Other components of equity	Total	Non-controlling interests	Total equity
Balance at January 1, 2026		15,993	11,582	801,367	(140,428)	106,191	794,705	96,554	891,259
Profit for the period		-	-	19,758	-	-	19,758	3,592	23,350
Other comprehensive income		-	-	-	-	3,241	3,241	1,403	4,644
Total comprehensive income		-	-	19,758	-	3,241	22,999	4,995	27,995
Purchase of treasury shares		-	(3)	-	(18,451)	-	(18,454)	-	(18,454)
Dividends		-	-	(15,659)	-	-	(15,659)	(1,934)	(17,593)
Share-based payment transactions		-	75	-	-	-	75	-	75
Transfer from other components of equity to retained earnings		-	-	187	-	(187)	-	-	-
Total transactions with owners		-	72	(15,472)	(18,451)	(187)	(34,038)	(1,934)	(35,972)
Balance at March 31, 2026		15,993	11,654	805,652	(158,879)	109,246	783,666	99,615	883,281

Condensed consolidated statement of cash flows

(Millions of Yen)

	Notes	Three Months Ended March 31, 2025 (January 1, 2025 - March 31, 2025)	Three Months Ended March 31, 2026 (January 1, 2026 - March 31, 2026)
Cash flows from operating activities Profit before tax Depreciation and amortization expenses Interest income Dividend income Interest expenses Foreign exchange loss (gain) Loss (gain) on sale and retirement of fixed assets Decrease (increase) in trade and other receivables Decrease (increase) in inventories Increase (decrease) in trade and other payables Other, net Subtotal Interest received Dividends received Interest paid Income taxes refund Income taxes paid Net cash provided by (used in) operating activities		34,946	31,391
		12,013	11,913
		(1,430)	(1,740)
		(319)	(319)
		674	345
		1,248	435
		52	155
		11,128	16,294
		(5,448)	3,749
		(5,687)	(23,129)
		(2,485)	(2,653)
		44,694	36,440
		1,774	1,676
		319	319
		(635)	(218)
		149	64
		(17,856)	(8,475)
		28,445	29,806
Cash flows from investing activities Payments into time deposits Proceeds from withdrawal of time deposits Purchase of property, plant and equipment, and intangible assets Proceeds from sale of property, plant and equipment, and intangible assets Long-term loan advances Purchase of financial assets Proceeds from sale and redemption of financial assets Purchase of shares of subsidiaries and associates Other, net Net cash provided by (used in) investing activities		(9,627)	(28,729)
		53,300	31,216
		(7,692)	(6,094)
		152	366
		(11)	(4)
		(19,374)	(34,446)
		16,620	23,657
		(933)	-
		131	295
		32,567	(13,740)

(Millions of Yen)

	Notes	Three Months Ended March 31, 2025 (January 1, 2025 - March 31, 2025)	Three Months Ended March 31, 2026 (January 1, 2026 - March 31, 2026)
Cash flows from financing activities Net increase (decrease) in short-term borrowings Repayments of lease liabilities Payments for purchase of treasury shares Dividends paid to owners of parent Dividends paid to non-controlling interests Net cash provided by (used in) financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period		(572) (1,981) (7,609) (12,912) (4,116)	(383) (1,953) (18,454) (15,671) (919)
		(27,191)	(37,379)
		(7,082)	1,574
		26,739	(19,739)
		261,054	253,092
		287,793	233,353

Notes to the condensed consolidated financial statements

Notes regarding going concern assumptions None.
Material accounting policies
Material accounting policies adopted for these condensed consolidated financial statements are the same as those adopted to the consolidated financial statements for the fiscal year ended December 31, 2025.

Segment information

Overview of reportable segments
The Group's reportable segments are part of its organizational units whose financial information is individually available, and are subject to regular review by its Board of Directors, the chief operating decision maker, for the purpose of deciding the allocation of its managerial resources and evaluating its business performance.
The Group is composed of three businesses, namely the personal care business, the pet care business and other businesses as its basic units, and has been engaged in its business activities by comprehensively developing domestic and overseas strategies by business unit.
Therefore, the "personal care business," the "pet care business," and "other businesses" constitute the Group's reportable segments.
In the personal care business, the Group manufactures and sells wellness care products, feminine care products, and baby care products. In the pet care business, the Group manufactures and sells pet food products and pet toiletry products. In other businesses, the Group manufactures and sells industrial materials related products, etc.
The accounting policies for the reportable segments are the same as for the condensed consolidated financial statements.
Sales and results by reportable segment

Sales and results by reportable segment are as follows.

(Millions of Yen)

	Three Months Ended March 31, 2025 (January 1, 2025 - March 31, 2025)
	Reportable segments				Adjustments	Amounts reported in condensed consolidated financial statements
	Personal care	Pet care	Other	Total	Adjustments
Sales to external customers	186,847	37,265	3,408	227,520	-	227,520
Sales across segments	-	-	33	33	(33)	-
Total segment sales	186,847	37,265	3,441	227,553	(33)	227,520
Segment profit (loss) (Core operating income)	21,823	6,925	270	29,018	-	29,018
Other income						6,133
Other expenses						(417)
Financial income						2,411
Financial costs						(2,198)
Profit before tax						34,946

(Millions of Yen)

	Three Months Ended March 31, 2026 (January 1, 2026 - March 31, 2026)
	Reportable segments				Adjustments	Amounts reported in condensed consolidated financial statements
	Personal care	Pet care	Other	Total	Adjustments
Sales to external customers	190,996	39,733	3,457	234,185	-	234,185
Sales across segments	-	-	44	44	(44)	-
Total segment sales	190,996	39,733	3,501	234,229	(44)	234,185
Segment profit (loss) (Core operating income)	24,200	6,896	383	31,479	-	31,479
Other income						695
Other expenses						(376)
Financial income						2,060
Financial costs						(2,466)
Profit before tax						31,391

Selling, general and administrative expenses

The breakdown of selling, general and administrative expenses is as follows.

(Millions of Yen)

	Three Months Ended March 31, 2025 (January 1, 2025 - March 31, 2025)	Three Months Ended March 31, 2026 (January 1, 2026 - March 31, 2026)
Freight-out expenses	16,229	16,822
Sales promotion expenses	8,182	7,861
Advertising expenses	6,006	6,788
Employee benefit expenses	13,777	14,000
Depreciation and amortization expenses	3,576	3,423
Research and development expenses	2,460	3,288
Others	9,317	9,380
Total	59,547	61,562

(Note) The research and development expenses for the three months ended March 31, 2026 reflect the amounts after reviewing and revising the scope of depreciation expenses, labor costs, and other costs recorded as research and development expenses to more accurately reflect the actual state of our research and development framework in the Company's business activities.

The amounts impacted by this revision in each item for the three months ended March 31, 2025 are as follows: employee benefit expenses of ¥436 million, depreciation and amortization expenses of ¥247 million, and others of ¥23 million.

Other income

"Other income" for the three months ended March 31, 2025 includes fire insurance proceeds of ¥5,274 million in relation to a fire accident that took place on June 24, 2020, at Ahmedabad Factory of Unicharm India Private Ltd., a subsidiary of the Company.