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Gentle care for life

 

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Business Segments

 
Net sales by business segments

2014/12 

 2015/12

2016/12 

2016/12

(IFRS)

 2017/12

(IFRS)

2018/12

(IFRS)

(Millions of yen)
Personal Care

486,960

647,573

619,047

523,116

555,388

599,290

Pet Care

62,564

85,624

85,756

75,390

79,847

82,073

Others

4,136 

5,508

6,161 

6,147

6,412

6,927

Total

553,661

738,707

710,965

604,653

641,647

688,290

(Note 1) Net sales represent those to external customers. 
(Note 2) The fiscal year end was changed from March 31 to December 31 as of FY2014.
Accordingly, the term of consolidation for FY2014 as a transitional period was the 9 month period from April 1, 2014 to December 31, 2014.
(Note 3) Adopted the International Financial Reporting Standards (IFRS) beginning with the fiscal year ended in December 31, 2017.

   

Personal Care Business

(Millions of yen)

December 2017

(IFRS)

December 2018

(IFRS)

Difference Rate of difference %
Net Sales 555,388 599,290

+43,902

+7.9%

Core operating Income 77,177 84,833 +7,656 +9.9%

(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, the Company continued to strengthen its internet sales and worked to build name recognition for the moony series in China, where demand for high value-added imports from Japan, which meet the needs for safety and security, is high, as well as to promote pants-type disposable diapers. In addition, the Company acquired shares of DSG (Cayman) Limited, which owns the BabyLove, Fitti and PetPet brands, and began initiatives to achieve high rates of growth in the Southeast Asia region, particularly in Thailand and Malaysia. 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 Vietnam, the Company endeavored to expand its market share of the Bobby brand by extending the distribution in local areas. The moony Air Fit diaper for low-weight newborns has also earned acclaim for its expansion into countries mainly in Asia (Japan, Thailand, Indonesia, Malaysia, Singapore, Vietnam, Myanmar, India, Taiwan, and Australia) as a revolutionary diaper that can be worn comfortably, winning the 2018 Outlook Asia Innovation Award, given to companies providing innovative products and services in Asian markets, at the Outlook Asia 2018 in Singapore Conference held by EDANA*1.

In Japan, the Company updated the products in the moony series, which fits comfortably on the baby’s skin while preventing leakage, by applying patented “covering high waist” technology*2 to moony man Air Fit, L-and Big-sized products of Natural moony man that uses organic cotton for the top sheet, a sensible choice for baby’s skin while preventing leakage, and Oyasumi Man series exclusive for nighttime wear. The new technology provides a firm fit to the rounded belly characteristic of infants, allowing clean coverage all the way up to the navel preventing the diaper to slide down. In addition, the Company has relieved parents from worries about leaks with the Mamy Poko series, which has a charming Disney character design and an affordable price, as well as impressive performance. The absorber now uses a gel that quickly absorbs large volumes of urine repeatedly for a maximum of 12 hours*3 to prevent leaks for the long term even for babies that play and move around a lot. Together with the Graduate School of Kyoto University, the Company carried out research based on developmental psychology on actions that motivate parents and children, and launched Trepanman as a new diaper that makes toilet training enjoyable for both parents and children. These diapers come with the world’s first*4 “Reward Stickers,” “Find the Same Picture” game, and “Wakuwaku Drawing Space,” which are patented technologies. We have given parents more enjoyment as they raise their babies.

*1: EDANA (European Disposables And Nonwovens Association)
*2: Constructed so that the edge of the waist area uses only stretchy, non-woven fabric, while the side edges of the waist area of the crotch use layers of stretchy, non-woven fabric and rubber threads.
*3: There are individual differences in the volume of urine a baby produces.
*4: Among pants-type disposable diapers manufactured by major global brands (survey by Unicharm Corporation, in February 2018).

Feminine Care Business

For overseas, in China the Company’s high-quality products featuring charming designs remain highly popular with the younger generation. 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, with the SOFY brand, which encourages women to spread their wings, the SOFY Ultra Sound Sleep Guard series that allows users to enjoy the happiness of sleep, now uses the world’s first*1 “scroll tape”*2, a technology that allows the attached tape to be extended by twice its original length to easily and compactly wrap up the napkin after use for disposal*3. This is intended to eliminate any discontent with the disposal of nighttime napkins, which are longer and thicker than regular napkins, after use. In addition, the daytime napkins in the SOFY Hada Omoi series which is gentle on sensitive skin were given better absorption and made even softer on the skin. These refinements ensure that this napkin feels dry to the skin even after long use, as if nothing was being used at all*4. Furthermore, the Company launched the SOFY Center-in Happy Catch series in the Center-in series, familiar for its “IN the pouch, GO fashionable!” approach. This new product prevents leaks and has a charming “Oshaneko”*5 design tailored to the lifestyle and tastes of middle school and high school girls. The Company also launched the SOFY menstruation management application, available for free in the App Store and Google Play, so that young girls who are experiencing menstruation for the first time can learn to manage their cycle themselves and mothers can become familiar with their daughters’ cycles to provide support. The Company has endeavored to ensure that young girls can go on with their regular lives with peace of mind. Furthermore, the Company has strived to free women from their physical and emotional constraints, while examining the structures of women’s bodies and minds from a scientific perspective in the hopes that all women can lead healthier lives and express their individuality. This spirit is reflected in not only our support for such social causes as the pink ribbon movement, which encourages women to get breast cancer screening and aims to eliminate breast cancer, for 11 consecutive years since 2008, but also in our offering of high value-added products utilizing its proprietary non-woven technology.

*1: After rolling up the used napkin, the non-adhesive tape sticks to the napkin’s adhesive face. Among pad-type menstrual napkins manufactured by major global brands (survey by Unicharm Corporation, in September 2017)
*2: Excluding the SOFY Ultra Sound Sleep Guard 290 and the SOFY Ultra Sound Sleep Fit 340
*3: As before, after rolling up the pad, it is wrapped separately for disposal for improved sanitation.
*4: Excluding the Hada Omoi Ultra Thin Slim 17.5 cm
*5: This made-up Japanese word suggests a chic and cute cat..   

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 Thailand, the Company acquired shares of DSG (Cayman) Limited, the owner of the Certainty brand, in order to build a superior market position in the market for adult disposable diapers, and have begun various initiatives aimed at accelerating the spread of such products.

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. In the light incontinence care products line, the Charm Nap Absorbent Sarafi series, which brings happiness to daily life with its absorbent care, introduced the “fast absorbing sheet”*1, a patented technology that instantly draws urine into the absorber, leaving no moisture behind on the surface. In addition to this significant improvement in performance, the Company developed the Charm Nap Sarafi Active Pants in collaboration with Okayama Prefectural University. These shorts absorb urine but look and feel like underwear and can be worn without any need to worry about slippage and twisting. With these products, 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 launched the Lifree Comfortable Pads series for women, which includes the world’s first*2 “speed in sheet” to instantly absorb urine containing impurities. Coupled with the Lifree Comfortable Pads for Men series, which is designed to prevent urine leakage and stains on trousers, these products are an example of the kind of product the Company develops so that users can enjoy their daily lives as usual. In addition, the Company offered a clean and pleasant incontinence care environment with the launch of the Lifree Bottom Clean Shower. This product can be used to wash bottoms to keep them clean and fresh, thus alleviating the burden for both home care workers and the person being cared for. The Company offers “NAVI for Adult Diapers,” which uses an artificial intelligence chatbot*3 — the first in the adult diaper industry — to answer questions about excretion care 24 hours a day, 365 days a year. 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”*4 events that support a healthy mentality and body. 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, following the increasing adoption of mask usage by kindergarteners and early elementary grades children, the Company launched Cho-kaiteki Mask For Kids (for kindergartener) and Cho-kaiteki Mask For Kids (for early elementary grades), which provide a perfect fit for the smaller faces of kindergarten and early elementary grades children. 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: Applicable sizes: 10 cc to 170 cc
*2: The structure uses a ribbed top sheet that allows the user to maintain bulkiness even when wet. Among light incontinence pads manufactured by major global brands. (survey by Unicharm Corporation, in February 2015)
*3: A program that engages in dialogue instead of a person (or a system that includes this function)
*4: “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 recommended ways to make daily life comfortable and implemented campaigns in an effort to invigorate the market with the Silcot Wet Tissues series, which is a box of wipes that enables users to clean quickly with just one hand, and the Wave brand, a single sheet of which can clean the entire house. The Company took steps to revitalize the increasingly diversified cosmetic cotton market and promote sales by implementing campaigns in 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, for the Silcot Sponge Touch Moisturizing Cotton, which makes skin amazingly moist using 50% less lotion*1, and for the Silcot Wiping Cotton Silky Cut products, made from Japan’s first superfine filament*2, which easily removes even microscopic dirt, as well as actively worked to capture demand from foreign visitors to Japan.

*1: Compared to the Company’s conventional products
*2: 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 2017

(IFRS)

December 2018

(IFRS)

Difference Rate of difference %

 Net Sales

79,847 

82,073 

+2,227 

+2.8% 

Operating Income

9,684

10,123

+439

+4.5%

(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, for dogs, the Company launched and promoted a camouflage pattern for male dogs and a check pattern for female dogs in its Manner Wear brand of diapers that seem more like clothing, enabling pet owners to go anywhere with their dogs whenever they want. For cats, the Company launched the Deo Toilet Kaiteki Wide that enables even large cats to turn around freely and find a comfortable position for excretion. This was inspired by the fact that cat owners who install cat toilets in their living space in order to spend more time with their pets feel that the current toilet system is too narrow for their cats and by the rise in “multiple pet owners” owning more than one cat. In the Deo Toilet brand, the Company launched the Deo Toilet Deodorizing Sheet High-Capacity 20-Sheet and the Deo Toilet Soft Scented Deodorizing Design Sheet with Natural Garden Fragrance, to help create a pleasant living space.

In the domestic pet food market, 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, the Company launched the Grand Deli Chicken White Meat with Broccoli and Pumpkin pouch products, in both loose shredded and jelly-soaked types, which use 100% domestic chicken meat and promote healthy eating with a great flavor. In addition, the Company launched the Grand Deli Cream Cheese and the first fruit flavor, Grand Deli Banana & Apple, in its Grand Deli Ottotto brand series of dog snacks with a crispy texture, jointly developed with Morinaga & Co., Ltd.*1 to meet the needs of owners who want to enjoy their snack time with their pets.
In cat food, in the Silver Spoon brand that uses plenty of the good-quality fish that cats love so that they are completely absorbed in their food until the very last bite, for both the “Kitten” products and the “Older Cat” products for cats of 15 years or so, the Company launched a Silver Spoon Assorted Pack with a blend of tuna, bonito and white chicken meat, broadening the line-up of products focused on maintaining health and nutritional balance. In addition, the Silver Spoon Three-Star Gourmet brand, a premium food featuring luxurious tastes and smells, launched the Silver Spoon Three-Star Gourmet: Creamed Tuna and Bonito, the first cat food that combines “fish cream” with dry kibble so that cats can enjoy different tastes and textures*2. In this way, the Company is working to provide the good taste that comes with high quality.

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 store that is specific to US.

*1: Snacks for dogs jointly developed for the first time by Unicharm Corporation and Morinaga & Co., Ltd.
*2: A pet food in which the individual dry kibbles are topped with lines of fish cream. Among pet food manufactured by major global brands. (survey by Unicharm Corporation, in August 2018)

Other Business

(Millions of yen)

December 2017

(IFRS)

December 2018

(IFRS)

Difference Rate of difference %
Net Sales 6,412 6,927

+515

+8.0%

Core operating Income -23 151 +175 -

(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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