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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.Executive summary
Fiscal 2025 saw steady market share gains and improved earning power in Japan, with early signs of growth and turnaround in overseas businesses, and embedded ROIC management supporting the K27 target of 11%+ ROIC.
Substantial increases in sales and operating income in the Cosmetics Business, with accelerated skin protection initiatives in the Americas and Europe.
Enhanced competitiveness in the Global Consumer Care business, with 30 consecutive months of YoY market share growth in Japan.
Improved earnings quality through high-value-added products, cost reductions, and ROIC-centered portfolio management.
Fiscal 2026 is positioned as a preparation period to ensure achievement of K27 profit targets, focusing on growth businesses and turnaround of challenged overseas operations.
Financial highlights
Net sales reached ¥1,688.6 billion, up 3.7% year-on-year; operating income was ¥164.1 billion, up 11.9%; net income attributable to owners was ¥120.1 billion, up 11.4%.
Gross margin improved by 0.4 points to 39.6%; operating margin increased by 0.7 points to 9.7%.
Basic EPS rose 12.2% to ¥260.30; EBITDA grew 6.3% to ¥249.9 billion.
Year-end dividend planned at ¥77 per share, full-year dividend ¥154, marking the 36th consecutive year of increases.
Net cash flows from operating activities were ¥199.7 billion; free cash flow was ¥129.9 billion.
Outlook and guidance
FY2026 net sales projected at ¥1,750.0 billion (+3.6%), operating income at ¥182.0 billion (+10.9%), and net income at ¥130.0 billion (+8.3%).
Basic EPS forecasted at ¥287.4 (+10.4%), with a planned dividend of ¥156 per share (pre-split).
ROIC expected to improve to 10.5%; EVA for 2026 planned at ¥51.0 billion.
Profit growth in 2026 expected from new U.S. tertiary amines plant and recovery in chemical business.
2-for-1 share split scheduled for July 2026.
- TimeTickerHeadlineOpen
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