Unicharm (8113) Q4 2025 earnings summary

Executive summary

• FY2025 consolidated net sales were 945.3 billion yen, down 4.4% year-over-year, with core operating income of 108.9 billion yen, down 21.4%, and profit attributable to owners of parent at 65.2 billion yen, down 20.3%, mainly due to intensified competition in Asia and China, while Japan and the Middle East showed stable or strong performance.

• Proactive investments and structural reforms were accelerated, especially in Asia, to lay the foundation for the 13th Mid-term Management Plan starting FY2026.

• A one-time valuation loss of 6,920 million yen was recognized due to a GST system revision in India.

Financial highlights

• Net sales: 945.3 billion yen (YoY -4.4%); core operating income: 108.9 billion yen (YoY -21.4%); profit attributable to owners: 65.2 billion yen (YoY -20.3%).

• EBITDA: 166.1 billion yen (YoY -8.7%).

• Base EPS: 37.30 yen (YoY -19.6%), reflecting the 3-for-1 stock split.

• Annual dividend: 18 yen per share, marking 24 consecutive years of increases.

• Total assets at year-end: 1,223,176 million yen; total equity: 891,259 million yen; equity ratio: 65.0%.

Outlook and guidance

• FY2026 forecasts: net sales 1,010 billion yen (+6.8% YoY), core operating income 136.0 billion yen (+24.9% YoY), profit attributable to owners 86.5 billion yen (+32.6% YoY), and basic EPS 49.71 yen.

• Recovery in Asia expected to drive growth; raw material costs projected to decrease by 13.0 billion yen.

• Capital expenditure planned at 40.0 billion yen; depreciation at 47.0 billion yen.

• Dividend per share planned to increase to 22 yen for the 25th consecutive year, with a target payout ratio of up to 65% and DOE of 4.5% or more.