Unicharm (8113) Q1 2026 earnings summary

Executive summary

• Q1 FY2026 consolidated sales rose 2.9% year-over-year to ¥234.2 billion, with core operating profit up 8.5% to ¥31.5 billion, reflecting benefits from structural reforms and offensive investments, though profit before tax fell 10.2% and profit attributable to owners dropped 20.7% due to lower other income and higher costs.

• Overseas markets drove growth, offsetting a temporary contraction in Japan, where sales and profit declined due to cost-consciousness and shipment adjustments; steady market share was maintained in Japan and profitability improved in China.

• Initiatives focused on sustainable growth, digital engagement, and product innovation across all segments.

• The company maintained top market share and profitability in Japan, with a turnaround expected from Q2 as value-passing strategies take effect.

Financial highlights

• Net sales: ¥234.2 billion (YoY +2.9%).

• Core operating income: ¥31.5 billion (YoY +8.5%, margin 13.4%, +0.6pp).

• Profit before tax: ¥31.4 billion (YoY -10.2%), impacted by absence of prior year insurance proceeds.

• Profit attributable to owners: ¥19.8 billion (YoY -20.7%).

• EBITDA: ¥43.3 billion (YoY -7.8%).

• Basic EPS: ¥11.40 (YoY -19.6%).

Outlook and guidance

• FY2026 sales forecast: ¥1,010 billion (+6.8% YoY); core operating profit: ¥136 billion (+24.9% YoY); net income attributable to owners projected to reach ¥86.5 billion (+32.6% YoY); basic EPS ¥50.26.

• Dividend forecast for FY2026 raised to ¥22.00 per share (up from ¥18.00 in FY2025).

• Q2 onward expected to see full-scale value-passing and recovery in Japan and Asia, with new product launches and continued aggressive investments.