Personal Care Sector: Earnings Outlook (Apr-Jun) Watch timing of end of earnings impact from Middle East conflict

Research evidence excerpt

Personal Care Sector: Earnings Outlook (Apr-Jun) Watch timing of end of earnings impact from Middle East conflict

J P M O R G A N Asia Pacific Equity Research

25 June 2026

Personal Care Sector: Earnings

Outlook (Apr-Jun)

Watch timing of end of earnings impact from Middle

East conflict

In 2Q FY2026 results for the personal care companies, we will watch for clues to Japan Equity Research

the timing of when the Middle East conflict will no longer negatively impact

Cosmetics and Personal Care /

earnings and whether visibility improves for FY2027 earnings. As we discuss Paper and Packaging

below, we believe that Unicharm might revise full-year guidance. We also think AC Akiko Kuwahara

that Lion could benefit from stronger momentum in overseas sales.

(81-3) 6736-8617

• Kao (4452, OW): We forecast 2Q FY2026 operating profit growth of ¥0.9 akiko.kuwahara@jpmorgan.comJPMorgan Securities Japan Co., Ltd.

billion YoY to ¥39.2 billion. However, excluding ¥3.8 billion in restructuring

costs (our estimate), we expect operating profit to increase by ¥4.7 billion. We

expect cosmetics and hygiene & living care businesses to drive profit

growth. We are watching sales trends in the beauty domain overseas and price

pass-through in the chemicals segment. According to external data from the

Ministry of Economy, Trade and Industry (METI) and point-of-sale (POS)

data, Kao's domestic sales growth in April-May was above the market average

for laundry detergent and hair care products, slightly below the market average

for infant diapers, feminine care products, kitchen detergent, and skincare

products, and generally in line with the market average for adult incontinence

products, household detergent, and makeup products.

• Unicharm (8113, OW): We forecast 2Q FY2026 core operating profit growth