Today, Kao Group released its financial report for the first quarter of 2024. In the first quarter, Kao’s total sales reached 365.8 billion yen ($2.35 billion), marking a 5.2% year-on-year increase, while operating profit surged by 201.7% to 21.984 billion yen ($141.1 million).
Kao operates across two major business segments: Consumer Products and Chemicals. Specifically, in the Consumer Products business, total sales for the first quarter amounted to 281.2 billion yen ($1.8 billion), showing a 6% year-on-year increase, with core operating profit reaching 14.8 billion yen ($95 million), up by 5.3% from the same period last year.
In Japan, where signs of economic recovery are evident, Kao’s sales grew significantly by 6.2%, reaching 173.1 billion yen ($1.11 billion).
However, in China, concerns over Japan’s discharge of ALPS-treated water contributed to a deterioration in business sentiment, resulting in a decrease in sales.
Sales in the Asian market decreased by 2.8%, totaling 54.1 billion yen ($347.2 million), with a substantial 10.1% year-on-year decrease. Conversely, sales in the Americas increased by 11.3% to 33.0 billion yen ($211.8 million), although they saw a slight 0.4% decrease year-on-year. Europe emerged as a highlight, with sales surging by 24.2% to 21.0 billion yen ($134.8 million), marking an 8.5% year-on-year increase.
In the Health and Beauty Care Business, sales grew by 9.1% to 94.8 billion yen ($608.3 million). Notably, driven by high-value-added products and the recent acquisition of the Bondi Sands brand, sales experienced a significant increase. Strategic initiatives such as the launch of the new premium hair care brand me/t in Japan and the strong performance of J0HN FRIEDA products in the Americas contributed to the growth in hair care product sales.
However, sales of products tailored for hair salons experienced a decline in both the Americas and Europe. Similarly, despite the strong performance of MegRhythm thermo products, sales of personal health products declined due to market shrinkage affecting bath additives.
In the Cosmetics division, sales increased by 5.4% to 54.6 billion yen ($350.4 million), mainly driven by strong performance in Japan and Europe. Notably, KANEBO’s premium skincare and makeup, as well as the ALLIE UV care brand, continued to excel globally. However, challenges were faced in the Chinese market due to local reactions to Japan’s ALPS-treated water discharge, particularly affecting the Cure/derma care brand.
