Today, Kao Corporation delivered a modest yet steady performance amid challenging global market conditions in the first half of 2025. Net sales rose by 2.7% year on year to ¥809.0 billion ($5.48 billion), —a result driven primarily by price increases (+3.5%), while volume contributed a slight 0.2% gain. Despite a 1.0% negative impact from currency translation, the company achieved growth across key metrics. Operating income climbed to ¥69.5 billion ($471.1 million), a ¥11.5 billion ($78 million) increase, and income before taxes rose by ¥7.4 billion ($50.2 million) to ¥71.8 billion ($486.7 million). Net income stood at ¥49.5 billion ($335.6 million), up ¥4.6 billion ($31.2 million) from the previous year.
The Global Consumer Care Business generated ¥605.8 billion ($4.1 billion) in sales, up 0.6% year on year, with like-for-like growth of 1.3%. Volume and price contributed 1.0% and 0.3% respectively. Although Japan saw a 4.4% sales increase to ¥399.5 billion ($2.7 billion) thanks to wage growth and inbound demand, performance in international markets was weaker. Sales declined in Asia by 7.4% (−5.7% like-for-like), in the Americas by 6.3% (−3.2%), and in Europe by 2.0% (−1.2%). Nevertheless, the segment’s operating income rose by ¥12.5 billion ($84.7 million) to ¥54.3 billion ($368.1 million), supported by improved profitability and increased volume, despite higher raw material costs.
In Global Consumer Care Business, the Health and Beauty Care Business recorded sales of ¥211.5 billion ($1.43 billion), a 0.4% year-on-year increase, or 1.6% on a like-for-like basis. Sales volume grew 1.8%, while prices dipped slightly by 0.2%. Skin care sales remained soft overall, with gains in Japan from UV care and hand soap offset by a decline in the Americas due to heightened competition affecting the Jergens brand. Hair care sales were a bright spot, driven by premium brands such as melt, THE ANSWER, and a refreshed Essential in Japan, although professional products under the GOLDWELL label declined in the U.S. and Europe due to weak sentiment. Personal health products performed well, supported by new product launches in Japan and China. Operating income increased by ¥3.1 billion ($21 million) to ¥18.1 billion ($122.7 million), but excluding last year’s structural reform expenses, the figure marked a slight decline of ¥0.3 billion ($2.03 million).
The Cosmetics Business also saw an uptick, with sales rising 1.5% to ¥118.5 billion ($803.3 million). Like-for-like sales grew 2.1%, supported by both volume (+1.3%) and price (+0.8%). Japan led the charge with strong performance from the company’s six core brands, including Curél, KATE, and KANEBO, along with new successes from SOFINA iP and SENSAI. In Asia, overall sales declined, though KATE and KANEBO outperformed expectations in Thailand. In Europe, MOLTON BROWN and Curél contributed to steady growth, particularly in the UK. The segment returned to profitability with operating income of ¥0.4 billion ($2.7 million), a ¥6.5 billion ($44.1 million) improvement over the previous year, reflecting the benefits of focused brand investment and organizational reforms.
Kao’s performance in the first half of the year reflects its ongoing efforts to balance price-driven growth with premium product development, supported by strategic marketing upgrades and operational restructuring across global markets.
