Unicharm (8113): 2Q results: Watching specific measures on price pass-through and likelihood from 3Q onward

研报英文原文证据摘录

J P M O R G A N

Asia Pacific Equity Research

06 August 2026

Unicharm (8113)

2Q results: Watching specific measures on price passthrough and likelihood from 3Q onward

Somewhat negative: 2Q core operating profit was ¥33.5 billion, ¥1.0 billion

below our estimate of ¥34.5 billion. In Asia, 2Q sales and profit turned to decline

YoY on a basis excluding forex, and we view this somewhat negatively. While sales

reform measures seem to be showing effects around the world, sales momentum

is weak. Management cut FY2026 core operating profit guidance from ¥136

billion to ¥113 billion (our estimate: ¥128 billion). The main reason behind this was

an assumption that raw materials costs will deteriorate by ¥25.5 billion, and we

believe this reflects currently foreseeable risk. However, we plan to confirm

whether the competitive environment in Asia has changed and the feasibility of

price pass-through at the briefing on August 6.

Core operating profit grew in 2Q, but sales momentum in Asia weak: 2Q

core operating profit grew ¥5.5 billion YoY. Profit grew as a ¥12.9 billion

improvement in gross profit offset the ¥7.4 billion YoY deterioration in SG&A

expenses. By region, profit growth in Japan and other regions (+¥4.1 billion

and ¥2.6 billion, respectively) offset the ¥1.2 billion profit decline in Asia. We

estimate the YoY change in 2Q constant-currency sales in major overseas

countries as follows: China: –23%, Thailand: –9%, India: –2%, Indonesia:

+15%, Vietnam: +3%, Middle East: +5%, Brazil: +2%, and North America:

+9%. Management said the China feminine care business maintained a core

operating margin similar to 1Q in 2Q.

FY2026 guidance revised: Management raised full-year sales guidance by ¥5

billion due to product mix improvement and price pass-through, but cut core

operating profit guidance by ¥23 billion. It cut guidance for gross profit by

¥19.4 billion and for SG&A expenses by ¥3.6 billion. These downward

revisions reflect worsening raw materials costs, and while we believe major

bad news has ended with this, we see the need to confirm the likelihood of price

pass-through for faster profit growth in FY2027. We also see the need to

…