Unicharm (8113) Q2 2026 earnings summary

Executive summary

• Achieved record-high Q2 sales of 487.1 billion yen, up 4.9% year-over-year, with core operating income rising 14.1% to 65 billion yen, reflecting strong operational resilience and supply chain optimization amid geopolitical instability.

• Profit before tax increased 6.6% to 66.6 billion yen, while profit attributable to owners declined 1.9% to 41.0 billion yen due to prior-year tax effects; total comprehensive income surged to 61.5 billion yen.

• Maintained high profitability with a consolidated core operating income margin of 13.3% and overseas sales ratio of 65.3%.

• Japan returned to sales and profit growth, driven by high value-added products in Wellness Care, while overseas markets saw 6.6% sales and 24.5% profit growth, led by Indonesia, Vietnam, and North American Pet Care.

• The company faced headwinds from global inflation, currency depreciation, and rising raw material and logistics costs, but maintained steady market share in Japan and continued strategic investments in growth areas overseas.

Financial highlights

• Net sales: 487.1 billion yen (+4.9% YoY); core operating income: 65 billion yen (+14.1% YoY); EBITDA: 89.9 billion yen (+4.4% YoY).

• Profit before tax: 66.6 billion yen (+6.6% YoY); profit attributable to owners: 41.0 billion yen (-1.9% YoY, due to prior-year tax effects).

• Basic EPS: 23.75 yen (-0.4% YoY); gross profit margin exceeded 40%.

• Gross profit increased to 198.26 billion yen from 180.84 billion yen YoY.

• Cash and cash equivalents at period end were 254.47 billion yen, up 1.38 billion yen from December 2025.

Outlook and guidance

• Full-year sales forecast revised upward to 1,015 billion yen (+7.4% YoY); core operating profit forecast at 113 billion yen (+3.8% YoY), but profit guidance revised downward due to anticipated cost pressures.

• Profit attributable to owners for the full year is forecast at 70 billion yen, with basic EPS of 40.68.

• Dividend forecast raised to 22 yen per share for FY2026.

• Focus on absorbing cost increases in 2H through higher value-added products and price adjustments.

• Continued investment in growth engines such as Pet Care and Wellness Care.