Overview of Consolidated Financial Results for the Fiscal Year Ending December 2025

Performance Overview

For the fiscal year ending December 2025, net sales reached ¥1,688.6 billion with a real growth rate of +3.7%, achieving higher revenue compared to the previous year. Operating income rose 11.9% year-over-year to ¥164.1 billion, improving the profit margin to 9.7%. Net income attributable to owners of the parent was ¥120.1 billion, up 11.4%, and ROIC improved to 9.7%, confirming profitability enhancement. By segment, the GC business performed well with net sales of ¥1,283.0 billion (up 2.5% YoY) and operating income of ¥133.1 billion (profit margin of 10.4%). The cosmetics segment also achieved increased profits, with sales of ¥261.6 billion and operating income of ¥10.4 billion, supported by recovery in China and expansion in key areas. On the other hand, the chemical segment experienced a decline in profits due to volume decreases and inventory valuation losses.

Shareholder Returns and Future Outlook

In 2025, Kao Corporation implemented a total of ¥80 billion in share buybacks and cancellations, and plans to increase dividends for the 37th consecutive fiscal year in 2026. Additionally, a 2-for-1 stock split for common shares is scheduled for July 1, 2026. These measures aim to strengthen shareholder returns and improve liquidity. Based on progress in the medium-term management plan 'K27,' the company will accelerate expansion of growth businesses and restructuring of underperforming segments to achieve sustainable growth. Particular focus will be placed on expanding the overseas GC business and strengthening the global promotion structure to enhance earnings power.