Today, Kao released its financial report for the fiscal year ended December 31, 2024, showing strong growth. Net sales increased by 6.3% year-over-year, reaching 1,628.4 billion yen ($10.67 billion). Like-for-like sales rose by 3.3%, with a 1.7% increase in volume and a 1.5% rise in price.
Operating income surged by 144.3% to 146.6 billion yen ($960 million), while income before taxes climbed 136.6% to 151.0 billion yen ($990 million). Net income grew significantly by 139.1%, reaching 110.4 billion yen ($722 million).
The Consumer Products Business reported a 4.8% increase in sales, reaching 1,268.2 billion yen ($8.31 billion), with a like-for-like increase of 2.4%. While volume grew modestly by 0.6%, price increases contributed 1.8% to the growth. Japan saw a 5.3% increase in sales, reaching 823.2 billion yen ($5.4 billion), while Asia declined by 4.6% to 212.5 billion yen ($1.39 billion), with like-for-like sales dropping 9.7%. In contrast, sales in the Americas grew 9.9% to 139.1 billion yen ($910 million), and Europe surged 17.7% to 93.5 billion yen ($610 million).
In the Health and Beauty Care Business, sales increased by 7.9% to 424.0 billion yen ($2.78 billion), driven by strong skin care and hair care performance. Like-for-like sales rose 4.1%, supported by a 4.0% volume increase. Kao’s premium skin care brand Bondi Sands, acquired in 2023, contributed positively to growth, while JOHN FRIEDA and ORIBE brands performed well in international markets. However, operating income declined by 6.0 billion yen ($39 million) to 34.4 billion yen ($225 million), impacted by increased marketing expenses and restructuring costs.
The Cosmetics Business recorded a 2.3% increase in sales to 244.1 billion yen ($1.6 billion), but like-for-like growth was flat. Strong performance in Japan and Europe, particularly from brands like SENSAI and SOFINA iP, was offset by weaker demand in China, where Kao restricted shipments to manage inventory. Operating income improved slightly but remained negative at -3.7 billion yen (-$24 million).
Looking ahead, Kao forecasts net sales of 1,670.0 billion yen ($10.94 billion) for fiscal 2025, a 2.6% year-on-year increase, with operating income projected to grow by 9.1% to 160.0 billion yen ($1.05 billion). The company aims to strengthen its high-value product offerings and enhance digital marketing to drive further growth.
