Unicharm (8113) Q2 2024 earnings summary

Executive summary

• Achieved record-high sales and core operating income for the eighth consecutive year, driven by value-shifting and cost reductions across all regions and segments.

• Overseas markets, especially Asia, Middle East, and North America, contributed significantly to growth, with strong performance in Feminine Care and Pet Care businesses.

• Gross profit margin improved significantly, with strong growth in both Japan and overseas markets.

• Dividend increased for the 23rd consecutive year, with a planned total return ratio of 50% through dividends and share buybacks.

Financial highlights

• Consolidated sales for Jan–Jun 2024: ¥487.7 billion (YOY +7.4%), core operating income: ¥73.1 billion (YOY +24.4%), EBITDA: ¥96.2 billion (YOY +17.8%).

• Profit before tax: ¥73.4 billion (YOY +20.3%), net income attributable to owners: ¥39.6 billion (YOY +14.3%), EPS: ¥67.27 (YOY +15.1%).

• Gross profit margin improved by 3.5 points; core operating income margin rose to 15.0% (+2.1 pts YOY).

• Foreign exchange fluctuations contributed ¥26.9 billion to sales and ¥3.5 billion to core operating income.

Outlook and guidance

• FY2024 sales forecast: ¥1,006 billion (YOY +6.8%), core operating income: ¥144 billion (YOY +12.5%).

• Second-half sales and profit expected to increase, with continued focus on value-shifting and cost absorption.

• Performance in Japan and Asia expected to remain strong, with further growth in Feminine Care and Pet Care.