UNICHARM CORPORATION
8113・Prime Market・Chemicals
Business
Unicharm is a major hygiene products company founded in 1961, built around two core pillars: Personal Care, which encompasses Wellness Care (adult incontinence care), Feminine Care, and Baby Care-related Products, and Pet Care, covering pet food and toiletries. The group consists of the company itself, 50 subsidiaries, and 8 affiliated companies, with production and sales bases across a wide range of regions including Asia, the Middle East, North America, and Oceania. Its primary customers are infants, women, the elderly, and pet owners, and it provides daily necessities covering all life stages. Consolidated net sales for FY2025 (ending March 2025) were ¥945,268 million, with overseas sales accounting for a significant proportion.
Business Model
Centered on the Technical Center in Kanonji City, Kagawa Prefecture, the company conducts R&D on nonwoven fabric and superabsorbent polymer technology, manufacturing and selling products tailored to local needs in each country. Domestically, sales are built up through value transfer via high value-added products, while overseas, growth is driven by expanding penetration in emerging markets and capturing market share. R&D expenses of ¥13,611 million (1.4% of net sales) are invested, with a tripartite marketing-development-production system aimed at cultivating category No. 1 products.
Company Strengths
Continues to hold the No.1 market share in domestic feminine care and baby care (Moony, Mamy Poko). Even amid the headwinds of the declining birthrate and shrinking target population, the company has achieved improved profitability through its two-brand strategy and rollout of high-value-added products, demonstrating the strength of its brand power as a track record.
The company operates subsidiaries and affiliates in more than 50 countries, including Thailand, Indonesia, India, China, the Middle East, and North America. In India, the third plant resumed operations in February 2025, strengthening the supply system, and market share reached an all-time high. In the Middle East (Saudi Arabia), aggressive marketing investment has driven high revenue growth and market share expansion.
The Pet Care segment's core operating profit margin stands at 15.4%, well above the company-wide average of 11.5%. In North America, cat wet food incorporating Japanese technology continues to perform well, and the company is expanding its e-commerce product lineup, achieving high revenue growth. In China, local expansion is also progressing through a capital and business alliance with JIA PETS.
ENVALITH's Perspective
Performance Trend
Revenue turned to a recovery trend from ¥945,268 million in FY2025 (ended December 2025), reaching ¥234,185 million (up 2.9% year on year) in Q1 FY2026 (ending December 2026). Core operating profit improved to ¥31,479 million (up 8.5% year on year), and the core operating profit margin rose to 13.4% (versus 12.8% in the same quarter of the previous year). However, quarterly profit attributable to owners of the parent fell sharply to ¥19,758 million (down 20.7% year on year), mainly due to the drop-off of ¥5,274 million in insurance proceeds from the India plant fire recorded in the same quarter of the previous year. As external factors, exchange rate fluctuations driven by US monetary policy, energy price spikes and logistics disruptions caused by escalating tensions in the Middle East, and a continuing down-trading trend amid worsening economic sentiment in emerging Asian countries persist. The full-year forecast remains unchanged, with revenue of ¥1,010,000 million and core operating profit of ¥136,000 million.
Growth Strategy
In the 13th Medium-Term Management Plan under the theme of the 'Three Rs,' the company aims for net sales of ¥1,500,000 million and ROE of 17% by 2030.
The company is promoting the penetration of Baby Care-related Products and Feminine Care-related Products through the expansion of sales areas and continued awareness-raising activities in India, Southeast Asia, and the Middle East. In India, market share reached an all-time high, and in Saudi Arabia, Baby Care share also recorded an all-time high, maintaining a growth trajectory.
The company is advancing strategic upfront investment in emerging e-commerce platforms and responding to intensifying competition. In the first quarter of FY2026 (ending December 2026), profitability improved, and signs of a bottoming-out and recovery are beginning to emerge. In Feminine Care-related Products, the company maintained brand value through prompt responses to quality-related rumors.
In North America, wet cat food featuring Japanese technology continues to perform well, and the expansion of the e-commerce product lineup has driven high net sales growth. In China, the company aims to achieve the No.1 share in key cities through its collaboration with JIA PETS. In Southeast Asia as well, the company is actively allocating management resources to both pet food and pet toiletries.
The company is promoting the development of products utilizing recycled pulp from used disposable diapers (such as Lifree) and building a recycling model in collaboration with local governments. It is also introducing facility-exclusive products for facilities affiliated with BABY JOB's 'Tebura Toen' (hands-free daycare attendance) service, aiming to differentiate through the combination of product functionality and environmental consideration.
The company continues to expand digital services, including the AI chatbot 'Charm-san,' the menstrual and health management app 'Sofy Be,' and pet-related services such as 'DOQAT' and 'Gohan Matching.' It is also strengthening e-commerce through the use of TikTok Shop and live commerce.
Last updated: July 17, 2026