Kao 2011/12 results released
Kao Group\'s net beauty care sales grew 0.8% to ¥537.9bn
Kao Corporation has released its consolidated results for the year ending 31 March 2012, reporting net sales of ¥1,216bn, a 2.5% increase compared to the same period last year.
Net sales in the Beauty Care Business grew by 0.8% to ¥537.9bn, however the company said that excluding the sales of currency translation net beauty sales would have increased 2.4%.
In Japan sales of beauty care products contracted as a result of a shift in consumer preference to lower priced products, in addition to the impact of the earthquake. However, sales of prestige beauty care products grew in the country with the launch of new products, increasing 2.2% to ¥259.9bn. Products launched in Japan included new products for self-selection brands such as Kate make-up and Evita total cosmetics, a new product line for SOFINA Primavista base make-up, and products with new cleansing technology from the Bioré facial cleanser and Bioré U body cleanser brands.
Outside Japan the company’s premium hair care products performed well.
Operating income for the beauty care business increased ¥9.8bn to ¥15.4bn thanks to ongoing efforts to rebuild the prestige cosmetics business in Japan and other factors and despite aggressive investment in advertising expenses for new products in North America and Europe.
For the fiscal year ending 31 December 2012, Kao Group forecasts net sales of ¥1,020bn (adjusted growth of 1.2% compared to the April-December period in 2011).
To respond to various changes in the operating environment in its Consumer Products Business, which includes beauty care, it will aim to achieve profitable growth globally with consumer driven, high value added products. In the Beauty Care Business specifically it will promote integrated management in North America and Europe through the unification of structures of a range of beauty care products in each country.
The company said it will also: “work to revitalise the market by adding greater value to products and proposing the Group’s own originality and appeal, while assessing changes in consumer attitudes toward beauty and lifestyle habits. In Japan, the contraction of the cosmetics market is forecast to continue, but the Kao Group will continue rebuilding its business and will promote the creation of strong brands through initiatives including launches and cultivation of distinctive new products tailored to changes in consumer needs and reform of marketing activities and sales methods to meet changes in consumer purchasing behaviour.”
Overseas, it said it will continue to cultivate facial cleansers and body cleansers that incorporate its new cleansing agent and a hair colour foam that uses its original technology.