UNICHARM CORPORATION

Business Details

Composed of three categories: Wellness Care (adult incontinence care, masks), Feminine Care (sanitary products), and Baby Care (disposable diapers). While securing stable demand as daily necessities domestically, the segment has expanded into numerous overseas markets including Southeast Asia, China, the Middle East, and India. Of the consolidated net sales of ¥234,185 million for Q1 FY2026 (ending December 2026), this core segment accounted for ¥190,996 million (approximately 81.5%).

Recent Overview

Both net sales and core operating profit exceeded the same quarter of the prior year, with improved profitability

In the Personal Care segment for Q1 FY2026 (ending December 2026) (January to March 2026), net sales reached ¥190,996 million (up 2.2% year on year), and core operating profit reached ¥24,200 million (up 10.9% year on year). The core operating profit margin improved to 12.7% from 11.7% in the same quarter of the prior year. Domestically, market share was maintained steadily through stable demand as daily necessities and a broad product lineup. In China, despite the impact of upfront investment in emerging e-commerce platforms and intensifying competition, profitability improved, and business performance is beginning to show signs of recovery from the bottom. In India, both baby care and feminine care achieved high growth. Meanwhile, in Southeast Asia, the trend toward down-trading due to worsening economic sentiment continued.

Key Products

Growth Drivers

• Sales growth from expanding demand related to aging in domestic Wellness Care and the rollout of high-value-added products (expansion of mild-to-moderate incontinence product lineup)
• High sales growth from expanded penetration of baby care and feminine care in India (record-high market share, expanded number of retail outlets)
• Sales growth and market share expansion from aggressive marketing investment in the Middle East (Saudi Arabia, etc.) (record-high domestic market share in Saudi Arabia)
• Improved profitability and a recovery trend in the China market, including strategic upfront investment in emerging e-commerce platforms
• Maximization of lifetime value through digital services in the femtech domain (Sofy Be) and AI chatbot (Charm-san)
• Environmental consideration and differentiation through the use of recycled pulp from used diapers and the development of recycling models in collaboration with local governments

Risks

• Continued risk of reputational damage related to sanitary products and baby care in the Chinese market (occurred in November 2024, and March and October 2025)
• Down-trading and intensifying price competition in Southeast Asia (Indonesia, Thailand, Vietnam) due to declining birth rates and economic slowdown
• Intensifying competition in Indonesia due to strengthened sales capabilities and price offensives by local companies, and risk of deteriorating distributor creditworthiness
• Risk of logistics network disruption and export stagnation due to heightened tensions in the Middle East (impact on exports to countries neighboring Saudi Arabia)
• Foreign exchange risk (impact on earnings from yen appreciation and local currency depreciation against the backdrop of U.S. monetary policy trends)
• Risk of tax reform such as GST changes in India
• Risk of impairment losses at subsidiaries in Malaysia, Indonesia, and China