Japanese company Kao Corporation, which is very active in the hair & beauty industry, joins the global positive trend that has seen Q1 2024 sales results exceeding expectations.
All Kao’s numbers are on the positive side: Revenue: JP¥365.8b (up 5.2% from 1Q 2023); Net income: JP¥16.5b (up 242% from 1Q 2023); Profit margin: 4.5% (up from 1.4% in 1Q 2023).
That means Kao Corporation’s was overall a positive result, with revenues beating expectations by 2.3% at JP¥366b. Kao also reported a statutory profit of JP¥35.43, which was an impressive 27% above what analysts had forecast.
Earnings are an important factor for investors, as they can track a company’s performance, look at what the analysts are forecasting for next year and see if there’s been a change in sentiment towards the company.
“The Japanese economy is on a path of gradual recovery – explains the company in the official press release -. However, the outlook is unclear due to factors including the slowing Chinese economy, geopolitical risks in Europe and the Middle East, and rising commodity prices. According to data from a survey of retail sales and consumer purchases, in Japan, which is the key market of Kao Group, consumer products (household and personal care products and cosmetics) grew in January-March 2024 compared to the same period of the previous year”.
As for the Cosmetics division, sales increased by 5.4% compared to the same period of the previous year to 54.6 billion yen. In Japan the market is recovering, allowing global ‘G11’ brands, including Kanebo and Kate, to record positive performances.
Sales in China fell with skincare brand Curél facing tough conditions due to factors including the local reaction to the Fukushima spill. In Europe, the new Sensai products contributed to market share growth, with sales of the Molton Brown brand also doing well.
