Company Reports

Unicharm reported 6.9% year-over-year revenue growth in the June quarter of fiscal 2026, driven by 6.2% growth in Japan and 3% growth in Indonesia, partly offset by a 14% decline in China. Management raised full-year revenue guidance by 0.5% but cut operating profit guidance by 17%.

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 across the major personal care categories.

Unicharm's first-quarter revenue and operating profit rose by 3% and 9% year on year, respectively, driven by margin recovery in Asia. Waning impact from reputational damage in China and alleviated price competition in Indonesia supported profitability in Asia.

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 across the major personal care categories.

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 across the major personal care categories.

Unicharm reported 2025 results with sales and operating profit declining 4% and 21% year on year, respectively. Reputational damage in China during the fourth quarter dragged sanitary napkin sales and margins significantly. The company also adjusted channel inventory in Indonesia.

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 across the major personal care categories.

Unicharm reported third-quarter results, with revenue and operating profit falling 1.8% and 1.5% year on year, respectively.

Unicharm's second-quarter revenue and operating profit fell by 6% and 22% year on year, respectively, dragged by sanitary napkins in China and diapers in Thailand and Indonesia.

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 across the major personal care categories.

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.

Unicharm's first-quarter core operating profit declined by 23% year on year, dragged by China and key Asian markets. The feminine care and baby care segments continued to be the key laggards. Revenue and profit in Japan were more resilient, thanks to price hikes and positive mix shift.

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.

Wide-moat Unicharm reported fiscal 2024 results (ending December 2024) that trailed our estimates on revenue and operating profit. The miss was primarily due to lower margins in Asian markets while the domestic market continued to deliver strong margins. We lowered our fair value estimate slightly to JPY 1,800 per share, from JPY 1,900 per share, as we reduced 2025-28 operating profit forecasts by 3% to 5% to account for the weaker profit numbers. However, we continue to view Unicharm’s shares as undervalued and our long-term view of its competitive advantage is 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.

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.

Wide-moat Unicharm’s third-quarter results trailed our revenue and operating profit estimates due to soft consumer sentiment in China and intense competition in key markets in Southeast Asia. We have previously noted these as near-term headwinds for the company, but the extent of margin erosion was stronger than our expectations. In the Chinese market, which likely raised investors’ concerns, we think the soft consumer sentiment affects Unicharm and the pricing power of local leading brands. The company increased its marketing spending during the third quarter for new products across key markets, which impaired earnings but should translate into better sales in the fourth quarter. As a result, we only lowered our full-year sales and operating profit forecasts by 1% and 4%, respectively.

We transfer coverage of Kao and Unicharm, with Kao retaining its wide moat rating but Unicharm’s moat upgrading from narrow to wide. We increased our fair value estimate for Unicharm from JPY 4,600 per share to JPY 5,700 per share and reduced our fair value estimate for Kao from JPY 7,600 per share to JPY 6,800 per share. Our fair value estimates for both companies imply fiscal 2024 earnings multiples that are largely consistent with their 10-year averages. We prefer Unicharm over Kao given the former’s laser focus on personal hygiene categories with ample opportunities in overseas markets. For Kao, we think the speed of turnaround for its cosmetics business remains uncertain and could remain a medium-term drag to operating margin.

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.

Narrow-moat Unicharm reported a mixed set of second-quarter results. While sales and profits rose 7.9% (2.2% currency-neutral) and 17.3% (11.3%), respectively, growth was largely lifted by a rebound from the first-quarter slumps in overseas core markets. Soft demand in China and intense price competition in Southeast Asia remain the key threats to its midterm growth prospect, while domestic price hike benefits are diminishing. We have lifted our minority interest and foreign-exchange assumptions. The adjustments leave an immaterial impact on our fair value estimate of JPY 4,600, indicating that shares are modestly overvalued. Our business profit forecast for 2024 is a touch above the company’s guidance. Whether it will be able to regain sales momentum, particularly in Asia, after the price hike and weak yen benefits fade in the second half will be our focus.