unicharm

Gentle care for life

 

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Business Segments

 
Net sales by business segments

 2015/12

2016/12

2016/12

(IFRS)

 2017/12

(IFRS)

2018/12

(IFRS)

2019/12

(IFRS)

(Millions of yen)
Personal Care

647,573

619,047

523,116

555,388

599,290  

620,742

Pet Care

85,624

85,756

75,390

79,847

82,073 

86,977

Others

5,508

6,161 

6,147

6,412

6,927 

6,514

Total

738,707

710,965

604,653

641,647

688,290 

714,233

(Note 1) Net sales represent those to external customers. 
(Note 2) Adopted the International Financial Reporting Standards (IFRS) beginning with the fiscal year ended in December 31, 2017.

   

Personal Care Business

(Millions of yen)

December 2018

(IFRS)

December 2019

(IFRS)

Difference Rate of difference %
Net Sales 599,290 620,742 +21,453 +3.6%
Core operating Income 84,833 78,893 -5,940 -7.0%

(Note 1) Net sales represent those to external customers.
(Note 2) Core operating income comprises gross profit less selling, general and administrative expenses.

Baby Care Business

Overseas, business performance recovered moderately in China as the Company proactively sold the moony series, which are high value-added imports from Japan, through e-commerce channels in order to meet the needs for “safety, security and high quality.” However, demand for Japanese products has not grown as much as expected because of the recent extraordinary change in the economic environment and in consumer values in China. Moreover, against the backdrop of the intense competitive environment as a result of the rise of local manufacturers, the Company found it difficult to significantly increase sales volume in the near term, and an impairment loss was recorded. For the future, the Company is striving to develop products that capture the indications of change within consumers while utilizing digital information. The Company continued to pursue synergies to drive dramatic growth in the Southeast Asia region, where DSG (Cayman) Limited, which owns the BabyLove, Fitti and PetPet brands, operates. In India, where the use of disposable diapers is still low even among emerging countries, the Company expanded its sales area and market share while promoting pants-type disposable diapers. In Saudi Arabia, the Company continued offering products tailored to consumer needs, in an effort to maintain the top share in the market*1, which it achieved in the previous year.
In Japan, the Company carried out research on actions that motivate people regarding childcare by stirring up positive feelings, in collaboration with Professor Masako Myowa-Yamakoshi of Kyoto University Graduate School of Education. In addition to the Happy Notifications, whereby a positive message such as “Thank you” or “I love you” appears when the baby urinates on a Natural moony*2 (the first disposable diaper in Japan*3 to use organic cotton for the top sheet), the Company has been cooperating with customers to come up with thoughts and ideas to help both the global environment and the workplace environment, and to contribute to children’s future in support of the “ORGABITS project” *4 developed by Toyoshima & Co., Ltd. The moony Air Fit series, which fits comfortably on the baby’s skin while preventing leakage, and the Natural moony series, incorporate a design that applies “origami technology” and “mechanics,” so that anyone can put them on their babies well, even novice parents, regardless of their proficiency. These products earned acclaim for taking the stress out of childcare and won the Good Design Award in 2019. The Company also released the world’s smallest*5 disposable diaper, moony flat type for hospitals and maternity clinics nationwide, which was developed jointly with nurses for babies born weighing less than 1,000 g as a result of Unicharm’s efforts to allow a snug fit on every baby born. Furthermore, the Company has been continuing to execute the “Project for Supporting Tiny Lives” from last year in order to continually support babies in the NICU*6, their families, and medical professionals. In the Mamy Poko series, which has a charming design and superior absorbency, the Company has extended its design variations by adding the Doraemon design, which is very popular with children, as a new design. For sub-category brands such as Trepanman and Oyasumi Man, the Company started free distribution of the “Toilet Training with moony” app incorporating an Oyasumi Man mode to help prevent bed-wetting. The app is useful for parents helping their children start toilet training, a key period of development when they gain self-confidence and build trust with the people around them. The app helps children develop the habit of going to the toilet in the morning and evening. The Company also started a flat-rate service for disposable baby diapers for nursery schools in partnership with BABY JOB Co., Ltd., a supplier of childcare personnel services, in order to reduce the burden on the increasing number of dual-income households and to give parents more enjoyment as they raise their babies.


*1: Disposable baby diaper market within Saudi Arabia (cumulative sales amount from July 2018 to June 2019, survey by Nielsen)
*2: Applicable sizes: Newborn (Birth to 3,000 g), Newborn (Birth to 5,000 g), and S sizes
*3: Surface sheets of leading disposable baby diaper products in Japan (survey by Unicharm Corporation, in March 2016)
*4: A project started from the desire to contribute to the global environment bit by bit through organic cotton
*5: Among disposable diapers for low-weight newborns manufactured by major global brands (survey by Unicharm Corporation, in March 2019)
*6: Taken from the acronym for Neonatal Intensive Care Unit

Feminine Care Business

For overseas markets, in China the Company’s high-quality products featuring charming designs remain highly popular with the younger generation. Under such circumstances, the Company continued in its efforts to expand its sales area and the number of stores. In addition, the Company has been endeavoring to expand its sales area and further increase its market share for products tailored to customer needs in emerging countries such as Indonesia, Thailand, Vietnam and India.
In Japan, to meet heightened demand for health and peace of mind, the Company added the SOFY Organic Cotton series, which uses organic cotton, to the SOFY brand, which encourages women to spread their wings, as premium lines in the various categories of napkins, tampons, panty liners, and sanitary shorts. The Company also released the new SOFY Ultra Sound Sleep Shorts, which is a wearable, shorts-shaped napkin that realizes comfort, is highly breathable, and looks like underwear, which provides the assurance for women that they can sleep through the night without leakage, even on days with heavy menstruation. In the pantyliner business, the Company has strived to offer high value-added products utilizing its proprietary non-woven technology, such as with the release of the new pantyliner, Kiyora Luxury Absorption series, which absorbs both discharge and moisture. Moreover, with efforts such as by starting the “#NoBagForMe” project aimed at helping create a world in which everybody can feel free to talk about menstruation and sanitary products without hiding them, and by continuing with its support for the pink ribbon movement for 12 consecutive years since 2008, the Company strove to free women from their physical and emotional constraints and to realize a society in which all women can play an active role, leading healthier lives and expressing their individuality, while examining the structures of women’s bodies and minds from a scientific perspective. 

Health Care Business

In the overseas markets, populations in Taiwan, Indonesia, Thailand, Vietnam and China are aging even faster than in Japan, which will boost the demand for adult excretion care products. The Company moved ahead with preparations to spread the care model established in Japan to Asian regions. In addition, the Company has conducted various initiatives aimed at accelerating the spread of such products in Thailand and Malaysia, where the Company is building a superior market position in the market for adult disposable diapers, and where DSG (Cayman) Limited, the manufacturer of the Certainty brand, operates.
In the domestic market, which continues to grow as Japan’s population of the elderly increases, the Company has been working to educate the public about products that enable elderly people to continue with their current lifestyle as before, commercialize “used disposable diaper recycling technology” that recycles used disposable diapers through the Company’s proprietary recycling system, build name recognition for “circular model,” and spread the adoption of the products. In the light incontinence care products line, in the Charm Nap series, which brings happiness to daily life with its absorbent care, the Company made additions to the lineup for the Charm Nap Absorbent Sarafi series, in the form of the Charm Nap Absorbent Sarafi Organic Cotton 100%*1, which uses natural organic cotton material, as a product that combines natural comfort with reassurance in use. Together with the Lifree Comfortable Pads series of incontinence care products for men that are designed to prevent urine leakage and stains on trousers, the Company continued its activities aimed at removing resistance to using these products by conveying that anyone can have light inconsistence. In the Lifree brand of adult disposable diapers and incontinence care products, the Company is working to support both those in care and their carers, as well as helping to extend healthy life-spans by equipping Lifree Pants series with our patented “easy stitches” technology that allows both sides of disposable pants to be torn with only a small amount of force, thus making the changes more convenient. The Company also offers NAVI for Adult Diapers, which uses an artificial intelligence chatbot*2 — the first in the adult diaper industry — to answer questions about excretion care 24 hours a day, 365 days a year. In these ways, the Company supports a healthy mentality and body. The Company is also working to combat social problems associated with an aging population, such as home confinement and dementia, by holding regular Lifree “Social Walking*3” events, which is an initiative that helps prevent dementia by encouraging people to continue working purposefully with society through initiatives that everyone can participate in. The Company has also actively promoted its products through TV commercials, on its website, during over-the-counter consultations at shops, and by creating shelf space at retailers based on daily activities to take the lead in the market for excretion care products.
In the Cho-kaiteki mask brand, which protects daily health and supports a safe and comfortable lifestyle, to respond to diversifying usage and needs, the Company launched Cho-kaiteki Mask Stuffy-Free Type BLACK, Cho-kaiteki Mask Regular Size Pink and Cho-kaiteki Mask For Kids (for kindergartener) Oyako Animal Pattern. In this way the Company strove to offer a range of masks suitable for comfortable year-round use by both children and adults, and to revitalize the market.


*1: The top layer that comes in contact with skin uses 100% organic cotton
*2: A program that engages in dialogue instead of a person (or a system that includes this function)
*3: “Social walking” is a coined word that means “social participation and walking,” and it indicates a form of walking that helps preventing dementia in a manner that anyone can easily benefit from by walking while having a good time with other people (devised by the Company, under the supervision of Tokyo Metropolitan Geriatric Hospital and Institute of Gerontology).

Clean and Fresh Business

In the domestic market for clean and fresh products, the Company developed products in line with the changes in living environments and lifestyle changes targeted at the increasing number of customers who wish to keep their living spaces always spick and span by cleaning their homes easily within the limited time they spend at home. The Company has responded to diversifying consumer needs by adding Silcot Noroclear Antibacterial Wet Tissues*1, which contains safe and secure to use, 100% natural antivirus ingredient, Noroclear Protein, developed by Kewpie Corporation to the Silcot Wet Tissues series, which is a box of wipes that enables users to clean quickly with just one hand. As for the Wave brand with its cleaning proposal that a single sheet of this product can clean the entire house, the Company launched Wave Floor Wiper and Wave Floor sheet (Wet or Dry-type), whose head automatically rotates to a vertical position just by pulling it upwards, so users can reach vertical gaps in furniture and appliances, to make the whole house spotless, and recommended ways to make daily life comfortable.
With regard to the Silcot Cotton series, which maintains the health of the skin as it changes on a daily basis and which makes everyday maintenance easier and more effective, the Company took steps to revitalize the increasingly diversified cosmetic cotton market through its products such as the Silcot Sponge Touch Moisturizing Cotton (winner of @cosme Best Cosmetics Awards three years in a row*2 and inducted into the Hall of Fame), which makes skin amazingly moist using 50% less lotion*3, and the Silcot Wiping Cotton Silky Cut products, made from Japan’s first superfine filament*4, which easily removes even microscopic dirt.
The Company has been working on reducing food wastage in relation to fresh foods with products such as Cook Up cooking paper for uses from food preparation, cooking, and storage to kitchen wipes, as well as introducing convenient usage methods such as maintaining the freshness of fresh foods, and Fresh Master tray sheets, which absorb excess moisture and let air through to prevent deterioration and discoloration of fresh foods.

*1: Does not eliminate all bacteria
*2: @cosme Best Cosmetics Awards: Best in Category–Beauty Goods 2016, Best in Category–Beauty Goods 2017, Hall of Fame 2018
*3: Compared to the Company’s conventional products
*4: The sheet covering the puff has a double-layered structure. The outer layer touching the skin consists of superfine filaments that are less than 10 μm in size and the inner part is made up of coarse cellulose fibers. The survey covered cosmetic cotton from major brands in Japan. (survey by Unicharm Corporation, in October 2015)

Pet Care Business

(Millions of yen)

December 2018

(IFRS)

December 2019

(IFRS)

Difference Rate of difference %

 Net Sales

82,073 

86,977 

+4,904 

+6.0% 

Operating Income

10,123

10,667

+543

+5.4%

(Note 1) Net sales represent those to external customers.
(Note 2) Core operating income comprises gross profit less selling, general and administrative expenses.


The Company has been working to develop products ranging from sanitary goods to food and create markets to support the lives of pets in an integrated manner in order to help create a “Cohesive Society” in which humans and pets can live together in comfort for a long time and in good health.
In the domestic pet toiletry business, with the proportion of elderly dogs increasing in the same way it has increased for humans in recent years, the Company has launched a new brand of the Manner Wear Long Time Diaper, which are fashionable, cute, can be worn almost like clothing, and have significantly improved resistance to slippage and twisting. It allows much-loved dogs to continue to live, play and walk as normal without being confined to their beds. For cats, the Company has improved the deodorizing power of the Deo Toilet Deodorizing Sheet series, designed to eliminate unpleasant odors, and worked to offer products enabling pets to live hygienically and comfortably.
In the domestic pet food market, the Company is committed to pursuing flavor and quality using near-natural ingredients by launching new products in the Grand Deli brand of dog food, which focuses on high-quality ingredients with well-balanced colors and a balance of flavor, taste, and nutrition such as the Grand Deli Additive-free 100% Domestic Pouch series, which retains the full flavor of the ingredients and is made with no additives*1 and 100% domestic chicken meat, and a non-colored snack, the Grand Deli Luxury Ingredient series, which uses low-fat chicken breast topped with ingredients such as cheese and pumpkin. The Company also strove to expand the dog gourmet market by newly adding “soybean flakes with chicken breast*2,” which is a new flavor ingredient, to Grand Deli Soft and increasing the amount of ingredients to improve its texture. In the Best Balance brand of health food designed to give the best to each dog breed with a balance of nutrition, digestibility and taste, the Company has newly adopted new “multi-health support grain,” packed with nutrients necessary for maintaining much-loved dogs’ health, and supported dogs’ health according to the characteristics of each dog breed.
For cats, in the Silver Spoon Three-Star Gourmet brand, which is a premium food featuring luxurious tastes and smells, the Company launched Silver Spoon Three-Star Gourmet Fish Cream with Three Assorted Flavors in an assorted range that enables pets to enjoy a variety of flavors for each meal and also launched a wet food product, Silver Spoon Three-Star Gourmet Pouch (Thick-style), that is delicious and easy to eat. In the Silver Spoon Three-Star Gourmet Snack series, bite-size snacks with specially selected, delicious ingredients that cats love and can enjoy freshly every day, the Company launched Silver Spoon Three-Star Gourmet Snacks Rich Grain, a snack for cats that enjoy a grainy texture of ingredients. In this way the Company was working to support a happy and healthy life for pets. In addition, the Company has worked to bring about a “Cohesive Society” in which humans and pets can live together by implementing campaigns to support “PANEL FOR LIFE,” a project launched by Christel Vie Ensemble Foundation, which offers various plans with the aim to increase awareness of the existence of rescued dogs and cats and to create a society where they can easily find a home.
In the North American market, sales have remained steady in sheets for dogs with the use of Japanese technology and in wet-type snacks for cats, and preparations were made for future growth, including reinforcing internet sales, which have grown significantly in recent years, and making overtures to pet specialty stores and dollar stores, single-price stores that are specific to US.

*1: No food dye, seasoning, or coloring agents used
*2: Patent pending ingredient that combines flakes that use soybeans as the main ingredient and chicken breast that dogs love

Other Business

(Millions of yen)

December 2018

(IFRS)

December 2019

(IFRS)

Difference Rate of difference %
Net Sales 6,927 6,514

-413

-6.0%

Core operating Income 151 219 +68 +45.1%

(Note 1) Net sales represent those to external customers.
(Note 2) Core operating income comprises gross profit less selling, general and administrative expenses.


In the category of business-use products utilizing its core non-woven fabric and absorber processing and forming technology, the Company focused on promoting the sales of industrial materials.

 

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