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Kao (4452) investor relations material

Kao Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary5 Feb, 2026

Executive summary

  • Achieved continuous market share expansion and improved earning power in Japan, with early signs of growth outside Japan.

  • Substantial increases in sales and operating income in the Cosmetics Business, and accelerated skin protection initiatives in the Americas and Europe.

  • Enhanced competitiveness in the Global Consumer Care (GC) business, with 30 consecutive months of YoY market share growth in Japan.

  • Net sales rose 3.7% YoY to ¥1,688.6 billion, operating income up 11.9% to ¥164.1 billion, and net income attributable to owners up 11.4% to ¥120.1 billion.

  • Basic earnings per share increased 12.2% to ¥260.30, and ROIC reached 9.7%.

Financial highlights

  • FY2025 net sales rose 3.7% YoY to ¥1,688.6 billion; operating income up 11.9% to ¥164.1 billion; net income attributable to owners up 11.4% to ¥120.1 billion.

  • Gross margin improved by 0.4 pts to 39.6%; operating margin increased by 0.7 pts to 9.7%.

  • EBITDA grew 6.3% to ¥249.9 billion; basic EPS up 12.2% to ¥260.30.

  • Net cash flows from operating activities were ¥199.7 billion; free cash flow was ¥129.9 billion.

  • Annual dividend per share increased to ¥154, with a payout ratio of 59.2%.

Outlook and guidance

  • FY2026 net sales forecasted at ¥1,750.0 billion (+3.6% YoY); operating income at ¥182.0 billion (+10.9% YoY); net income attributable to owners at ¥130.0 billion (+8.3% YoY).

  • Operating margin expected to rise to 10.4%; ROE to 12.0%; ROIC to 10.5%.

  • Economic Value Added (EVA) projected at ¥51.0 billion.

  • Continued focus on expanding growth businesses, especially hair care in Japan and cosmetics/skin care outside Japan.

  • 2-for-1 share split scheduled for July 2026.

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Frequently asked questions

Kao Corporation, founded in 1882, is a Japanese multinational company known for its wide range of consumer and chemical products. Primarily engaged in the production of beauty care products including cosmetics and skin care, Kao also manufactures health care products and chemicals used across various industries. The company's portfolio includes well-known global brands such as Jergens, Bioré, John Frieda, and Goldwell. The company is headquartered in Tokyo, Japan, and its shares are listed on the Tokyo Stock Exchange.

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