Kao Corporation

Kao's cosmetics business posted operating profit of 5.8 billion yen in the first half of the fiscal year ending December 2026, an increase of 5.4 billion yen from 300 million yen in the same period a year earlier. Revenue rose 10.5% year on year to 131 billion yen, and the operating margin climbed from 0.3% to 4.4%. Among the five reporting segments, the cosmetics business's 5.4 billion yen increase in first-half operating profit was the largest, surpassing the chemical business's 3.7 billion yen, the hygiene and living care business's 3.6 billion yen, and the health and beauty care business's 1.7 billion yen. At the core of the cosmetics business is Kanebo Cosmetics, a wholly owned consolidated subsidiary, whose revenue of 261.5 billion yen in the fiscal year ending December 2025 accounted for 15.5% of consolidated revenue of 1.6886 trillion yen. In Japan, six priority brands performed well, with China and Thailand driving growth, while Europe fell below the year-earlier level amid a sluggish market.

Kao has revised upward its full-year earnings forecast for the fiscal year ending December 2026 and announced the creation of a new shareholder benefit program. For the interim period of the fiscal year ending December 2026, consolidated revenue rose 7.8 percent year on year to 871.9 billion yen, and operating profit increased 38.5 percent to 95.8 billion yen. A sharp recovery in the cosmetics business, where operating profit jumped from 300 million yen a year earlier to 5.8 billion yen, lifted overall results. Operating profit includes an 11.5 billion yen gain on land sales in the first quarter, but even excluding this, profit reached 84.3 billion yen, the highest level since 2019. The shareholder benefit program targets shareholders holding 100 shares or more as of December 31 each year, with those holding 1,000 shares or more receiving a cosmetics or home care product set worth 10,000 yen. Following these announcements, the stock price rose 409 yen from the previous day to 3,597 yen, hitting a new year-to-date high.

In disclosures released on August 5, many companies reported upward revisions to earnings and sharp profit increases as positive factors. Takamatsu Construction Group saw its ordinary profit for the April–June quarter jump 2.9 times. Nitto Boseki raised its full-year ordinary profit forecast by 15 percent, adding to its record profit outlook. Kao lifted its full-year net profit forecast by 4 percent and introduced a new shareholder benefit program. On the negative side, Cruise saw its ordinary loss for the April–June quarter widen, and Unicharm cut its full-year net profit forecast by 19 percent.

On August 5, multiple companies announced new or revised shareholder benefit programs. Kao announced a new program where shareholders holding 100 shares or more as of the end of December each year for at least six consecutive months will be entered into a lottery to receive company products, while those holding 400 shares or more will receive a cosmetics set or household goods set worth 6,000 to 10,000 yen, depending on the number of shares held. Asterisk, to mark its 20th anniversary, will give a flat 500-yen QUO Card Pay to shareholders holding 100 shares or more as of the end of August 2026. Saint Marc Holdings will add new business formats to the eligible uses of its benefit card, while introducing a requirement for continuous holding of at least six months starting from the record date at the end of March 2027. QLS Holdings will increase the value of digital gifts by 30% from the record date at the end of September 2026, raising the amount from 5,000 yen to 6,500 yen for holdings of 500 to less than 1,000 shares, and from 10,000 yen to 13,000 yen for holdings of 1,000 shares or more. Chichibu Railway will discontinue discount tickets due to facility closures and add five one-way ride tickets for the Hodosan Ropeway. Techno Ryowa will keep the shareholding requirement for benefits at 100 shares or more even after a stock split, effectively expanding the program. Shofu will change the eligibility for its discounted company product sales from all shareholders to those holding 100 shares or more, discontinue the nail product benefit sale, and give national rice vouchers to shareholders holding 100 shares or more as of the end of September for at least one consecutive year.

Global cosmetics brand KATE has launched 'KABUKE: Break Convention,' a new international campaign drawing on elements of Kabuki, the traditional Japanese performing art. The campaign debuted on July 8, 2026, pairing KATE's shadow enhancing makeup with the Kabuki spirit to communicate individuality and self-expression worldwide. It features Kabuki actor and Kiyomoto-style singer Ukon Onoe, who notes that KATE's 'NO MORE RULES.' philosophy aligns with the spirit of Kabuki. Campaign assets include key visuals, a concept movie, and a dedicated website, with products like KATE Smooth Fit Pressed Powder and KATE Real Shading Stick set for release on July 25, 2026, in Japan and select Asian markets including Taiwan, Hong Kong, Thailand, Malaysia, and the Philippines.