Key Takeaways: Kao’s cosmetics sales rose 10.6% in Q3, fueled by high-value products, brand investment, and renewed growth in Japan and China.Profitability improved with ROIC up to 9.3%, supported by price discipline, product mix optimization, and cost efficiencies.Kao reaffirmed FY2025 targets, doubling down on premium innovation and global expansion to sustain long-term beauty growth.Kao Corporation delivered a strong showing in the nine months ended September 30, 2025, underpinned by improving profitability and a rebound in its global cosmetics business. Driven by high-value product strategy, pricing discipline, and brand momentum, the Japanese beauty and household-care giant is increasingly projecting itself as growth-ready in beauty despite macro and regional headwinds.Key FinancialsThe Cosmetics Business (skincare, color cosmetics, prestige) posted sales of ¥181.2 billion ($1.21 billion) (+4.9% like-for-like (LFL)) for the nine months.For Q3 alone, cosmetics achieved a robust LFL growth of +10.6%.The Health & Beauty Care Business (including hair, body, and personal wellness) recorded ¥321.8 billion ($2.15 billion) in net sales (+3.0% LFL).Profitability in the cosmetics division improved notably through fixed-cost streamlining in Japan and recovery in China.The company’s continued investment in its six global “focus brands,” combined with a commitment to product innovation and sustainability, has helped sustain momentum in the higher-end segments where consumer demand remains resilient.In Japan, Kao’s Household & Personal Care segment achieved 27 consecutive months of market-share growth, underscoring domestic strength.