Japanese chemical and consumer goods conglomerate Kao Corporation reported net sales of 1.2 trillion yen ($7.2 billion) for the nine months ended Sept. 30, a 3.5 percent year-on-year increase, as it executes a strategic shift in its cosmetics business.

Kao’s key divisions of household, personal care and cosmetics products grew modestly in Japan, despite the market suffering from higher prices due to a weakened yen. The company’s cosmetics segment, which includes labels like Curél and Kanebo, returned to growth in Asia, with slight growth in Europe and a sales dip in the Americas. Its global consumer care division, housing brands like Jergens, Bioré and John Frieda, saw growth in Japan but flat sales in Europe and slight declines in Asia and the Americas.

The company upheld its full-year 2025 forecast of $11 billion announced in Aug. 2025, and noted that the rising costs of raw materials, particularly fats and oils, will be offset by price increases and new launches.

In Sept. 2025, Kao announced a strategic shift in its cosmetics division as part of its three year “K27” plan to restore operating profit and boost international sales with a focus on its six “core” brands: Curél, Kanebo, Sensai, Kate Tokyo and Sofina.

So far they have more than doubled their sales in Southeast Asia, driven by prestige label Kanebo and mass brand Kate Tokyo. By 2027, the company aims to double its prestige sales of Molton Brown and Sensai in Asia, and has set a target of 50 percent of sales coming from outside Japan for its dermatological skincare line Curél.

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