Headwinds in Asia to Weigh on Near-Term Earnings, but Long-Term Outlook for Unicharm Unchanged

Unicharm strives to lead in personal hygiene categories in Japan and overseas markets, especially in Asia, establishing extensive distribution channels and providing innovative products to cater to consumers of different age groups. Domestically, the company’s dominant market position has enabled price hikes amid input cost increases when inflation began its uptrend in 2022. We think Unicharm is well positioned to identify opportunities in new channels and launch new products to drive top-line growth and margin expansion in Japan.