THE WHAT? Kao has reported its results for the nine months ended September 30, 2023. The Japanese consumer goods manufacturer saw sales drop 0.2 percent compared to the same period in 2022 to ¥1,125,883 million. Operating income plummeted 34.1 percent and diluted earnings per share dropped from 2022’s  ¥123.82 to  ¥70.

THE DETAILS By segment, the Cosmetics Business experienced the biggest drop, down 1.7 percent LFL, while Hygiene and Living Care put on 1.1 percent, Health and Beauty Care grew 3.1 percent and Life Care dipped 0.5 percent.

THE WHY? Kao attributed its muted performance to a market slowdown in China, which had previously been driving growth, geopolitical risk in Europe and the Middle East and persistent high costs due to inflation.