TOKYO (dpa-AFX) - Unicharm Corporation (UN41.F, 8113.T), a Japanese maker of disposable hygiene products, household cleaning products, and others, on Wednesday posted a drop in net income for the first half of fiscal 2026 due to increased costs and expenses. However, Unicharm recorded an increase in sales, helped by the performance of almost all segments of the company.
In addition, the Japanese company has revised down its annual earnings outlook amidst expected increases in raw material prices, logistic costs, and others due to the persisting crisis in the Middle East.
For the six-month period to June 30, the company reported net income of JPY 41.031 billion, or JPY 23.75 per basic share, less than JPY 41.813 billion, or JPY 23.84 per basic share, in the same period last year.
Pre-tax income was JPY 66.608 billion, higher than last year's JPY 62.496 billion. Core operating income was JPY 65.032 billion, compared with JPY 57.014 billion in the previous year.
Income tax expenses moved up to JPY 17.779 billion from JPY 15.799 billion a year ago. Financial costs stood at JPY 3.145 billion as against the prior year's JPY 2.757 billion. Selling, general, and administrative expenses also moved up to JPY 133.228 billion from JPY 123.825 billion a year ago.
The company recorded net sales of JPY 487.133 billion, up from JPY 464.170 billion a year ago.
Looking ahead, for fiscal 2026, Unicharm now expects net income of JPY 70 billion, compared with the earlier guidance of JPY 86.500 billion. Income per basic share is now anticipated to be JPY 40.68, less than the prior expectation for JPY 50.26 per basic share. The company, however, now projects net sales of JPY 1.015 trillion, higher than the earlier outlook of JPY 1.010 trillion.
For fiscal 2025, Unicharm recorded net profit of JPY 65.212 billion, or JPY 37.30 per basic share, with net sales of JPY 945.268 billion.
For fiscal 2026, the Japanese company still intends to pay a total dividend of JPY 22 per share, higher than JPY 18 per share last year.
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