Kao Full Year 2024 Earnings: In Line With Expectations

Kao (TSE:4452) Full Year 2024 Results

Key Financial Results

• Revenue: JP¥1.63t (up 6.3% from FY 2023).
• Net income: JP¥107.8b (up 146% from FY 2023).
• Profit margin: 6.6% (up from 2.9% in FY 2023). The increase in margin was driven by higher revenue.
• EPS: JP¥232 (up from JP¥94.37 in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Kao Meets Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) was also in line with analyst expectations.

The primary driver behind last 12 months revenue was the Japan segment contributing a total revenue of JP¥903.9b (56% of total revenue). Notably, cost of sales worth JP¥990.0b amounted to 61% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to JP¥355.5b (67% of total expenses). Explore how 4452's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 2.7% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Personal Products industry in Japan.

Performance of the Japanese Personal Products industry.

The company's shares are up 3.5% from a week ago.

Balance Sheet Analysis

While earnings are important, another area to consider is the balance sheet. We've done some analysis and you can see our take on Kao's balance sheet.

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