Unicharm (8113) Q3 2025 earnings summary

Executive summary

• Consolidated net sales for the first nine months of FY2025 were ¥694,225 million, down 3.9% year-over-year, with core operating income at ¥86,649 million, down 16.4% year-over-year, reflecting a reaction to the previous year's record performance and strategic investments in Asia.

• Profit attributable to owners of parent increased by 2.0% year-over-year to ¥60,716 million, supported by improved net financial and insurance benefit income.

• Overseas markets faced challenges from economic uncertainty, increased price competition, and reputational issues in China, while Middle East and North America showed strong demand.

• In Japan, steady demand for daily necessities and product innovation supported stable performance.

• Strategic investments in Asia began to yield positive results in the third quarter, with revenue and profit growth in the region from July to September.

Financial highlights

• Net sales: ¥694,225 million (down 3.9% YoY); core operating income: ¥86,649 million (down 16.4% YoY); EBITDA: ¥128.9 billion (down 4.8% YoY).

• Profit attributable to owners of parent: ¥60,716 million (up 2.0% YoY); base EPS: ¥34.68 (up 2.8% YoY), reflecting a 3-for-1 stock split.

• Gross profit for the period was ¥271,553 million, down from ¥284,642 million year-over-year.

• Gross profit margin improved by 0.6 percentage points in Q3, despite a 0.3 point deterioration for the nine-month period.

• Exchange rate fluctuations reduced sales by ¥11.9 billion and core operating income by ¥0.5 billion.

Outlook and guidance

• FY2025 full-year forecast: net sales ¥974,000 million (up 4.0% YoY), core operating income ¥120,000 million (down 13.3% YoY), profit attributable to owners of parent ¥85,100 million (down 5.6%), and basic EPS ¥48.91.

• Q4 is progressing as planned, with high growth in Japan and North America and gradual recovery in China and Thailand.

• Continued focus on e-commerce and new product launches in Asia.

• No changes to the previously announced forecast.