Business Description

Kao Corporation is involved in the sale and production of chemical and consumer products. Tomaro Nagase founded the company on June 19, 1887. It is headquartered in Tokyo. It operates in the following segments: Chemical, Consumer Products, and Other. Consumer Products include Skin Ca, Cosmetics, Hair Care Products, Fabric and Home Care businesses, Human Health Care, and Cosmetics. Cosmetics products include SUQQU and Primavista, SENSA, COFFRET DOR KATE, and COFFRET DOR. Hair Care and Skin Care sells skin care products like body cleansers and sunscreens as well as body lotions. It also offers hair care products like shampoos, conditioners, and hair colors.

The Chemical segment includes oleochemicals that are made from natural fats and oils, performance chemicals like surfactants, as well as specialty chemicals such as toners and toner binders. The Human Health Care company sells sanitary products like Laurier sanitary napkins and Merries baby diapers, Relief adult disposables, Healthy functional drinks, Clear Clean, Deep Clean, and Healthy functional beverages. Fabric and Home Care include CuCute dishwashing detergent and Magiclean household cleaners. The Other segment deals with investments in the maintenance of logistic facilities, information technology (IT), expansion, and toner binders. Through Curel, the company offers eye skin care products including essence and cream.

Key Financials

Revenue (US$ Mn):

• US$ 10,474 Mn was the annual revenue generated by Kao Corporation in 2021
• Kao Corporation’s annual revenue for 2020 was US$ 10,203 Mn, a -11.2% decrease from 2019
• From 2018’s annual revenues, Kao Corporation registered a 2.97% increase in 2019, amounting to US$ 11,489 Mn
• Total revenue of US$ 11,158 Mn was generated in 2018 by Kao Corporation

Operating Income (US$ Mn):

• Kao Corporation’s operating income for 2021 was US$ 144 Mn, a -18.28% decrease from 2020
• The operating income generated by Kao Corporation in 2020 was US$ 176 Mn
• At a 1.93% increase, Kao Corporation’s operating income of US$ 212 Mn was indexed in 2019
• Kao Corporation generated an operating income of US$ 208 Mn in 2018

Net Income (US$ Mn):

• Kao Corporation’s net income for 2021 was US$ 823 Mn, a -13% decrease from 2020
• The net income generated by Kao Corporation in 2020 was US$ 945 Mn
• At a -3.21% decrease, Kao Corporation’s net income of US$ 1,110 Mn was indexed in 2019
• Kao Corporation generated a net income of US$ 1,147 Mn in 2018

Operating Margin %:

• 10% was the operating margin generated by Kao Corporation in 2021
• Kao Corporation’s operating margin for 2020 was 13%, a -9.93% decrease from 2019
• From 2018’s operating margins, Kao Corporation registered a 2.17% increase in 2019, amounting to 14%
• An operating margin of 14% was generated in 2018 by Kao Corporation

Gross Margin %:

• Kao Corporation’s gross margin for 2021 was 40%, a -5.62% decrease from 2020
• The gross margin generated by Kao Corporation in 2020 was 43%
• At a 0.23% increase, Kao Corporation’s gross margin of 44% was indexed in 2019
• Kao Corporation generated a gross margin of 43% in 2018

SWOT Analysis

Strengths

R&D provides a competitive advantage

Kao is a strong investor in R&D and develops innovative products that add value. This follows the Japanese philosophy Yoki-Monozukuri. R&D at the company focuses on creating products that are responsive to customers’ changing needs. It uses its R&D resources through product development and fundamental technology research divisions. The company’s fundamental technology division deals with materials and phenomena in the areas of physics, understanding mechanisms, and identifying suitable ingredients. The company spent JPY59.143 million on R&D in FY2019. This was 3.9 %.

Get this premium content

The Premium data is Locked

Buy Now to Unlock Premium Data

Request Sample Data