Kao's Cosmetics Business Improves Operating Margin from 0.3% to 4.4% in First Half

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Summary · why it matters

Kao's cosmetics business posted operating profit of 5.8 billion yen in the first half of the fiscal year ending December 2026, an increase of 5.4 billion yen from 300 million yen in the same period a year earlier. Revenue rose 10.5% year on year to 131 billion yen, and the operating margin climbed from 0.3% to 4.4%. Among the five reporting segments, the cosmetics business's 5.4 billion yen increase in first-half operating profit was the largest, surpassing the chemical business's 3.7 billion yen, the hygiene and living care business's 3.6 billion yen, and the health and beauty care business's 1.7 billion yen. At the core of the cosmetics business is Kanebo Cosmetics, a wholly owned consolidated subsidiary, whose revenue of 261.5 billion yen in the fiscal year ending December 2025 accounted for 15.5% of consolidated revenue of 1.6886 trillion yen. In Japan, six priority brands performed well, with China and Thailand driving growth, while Europe fell below the year-earlier level amid a sluggish market.

Impact on assets 2

Consumer Staples▲ · 1 stocks
Kao Corporation
4452
▲ PositiveCapitalrelevance

Kao's cosmetics segment operating profit jumped to 5.8 billion yen with margin up from 0.3% to 4.4% on 10.5% revenue growth.

Industrials▲ · 1 stocks

Off-coverage companies 1

Kanebo Cosmetics Inc.Private▲ Positive
Demandrelevance

Kanebo Cosmetics, the core of Kao's cosmetics business, saw six priority brands perform well in Japan with China and Thailand driving growth.

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