Unicharm (8113) Q4 2024 earnings summary

Executive summary

• Achieved record-high consolidated sales of 989 billion JPY (+5.0% YoY) and core operating income of 138.5 billion JPY (+8.2% YoY), driven by strong performance in Japan, India, Middle East, and North America.

• All-time record highs for both sales and core operating income for the eighth consecutive year, with value-shifting and cost reduction as key drivers.

• Personal Care, Wellness Care, and Pet Care segments led growth, with notable expansion in value-added products and overseas markets.

• The company implemented a 3-for-1 stock split effective January 1, 2025, to enhance liquidity and investor accessibility.

Financial highlights

• Net sales: 989 billion JPY (+5.0% YoY); core operating income: 138.5 billion JPY (+8.2% YoY, margin 14.0%).

• EBITDA: 182 billion JPY (+1.6% YoY); profit before tax: 134.5 billion JPY (+1.7% YoY); profit attributable to owners: 81.8 billion JPY (-4.9% YoY).

• Base EPS: 46.41 JPY (-4.3% YoY); yearly dividend: 44 JPY/share, marking 23 consecutive years of increases.

• Share buybacks: approx. 19 billion JPY (3.9 million shares) purchased as planned.

• Cash and cash equivalents at year-end were 261 billion JPY, up 7.3 billion JPY from the previous year.

Outlook and guidance

• FY2025 forecast: sales 1,025 billion JPY (+3.6% YoY), core operating income 146 billion JPY (+5.4% YoY), profit attributable to owners 86.4 billion JPY (+5.6% YoY), EPS 49.12 JPY.

• Revenue and profit expected to reach record highs, with actual growth (constant currency) of +5.4% in revenue and +6.2% in profit.

• Annual dividend for FY2025 is planned at 18 JPY per share (post-split), with a continued focus on stable and increasing shareholder returns.

• Dividend payout ratio target raised from 30% to 35%; annual dividend planned to increase for 24th consecutive term.

• Total return ratio to exceed 50% in FY2025, with expanded share buyback framework.