Unicharm (TYO: 8113) FY15 Results: Performance Weaker than Expected

Executive Summary

• Unicharm reported a 10.9% increase in adjusted revenue and a 4.9% increase in adjusted operating income for the 12 months ending December 31, 2015.
• A deteriorating economic environment in emerging markets, a shift toward online sales in China, and an increase in marketing and business development costs contributed to the weaker-than-expected performance.
• Operating income in Asia decreased by 17.8% year over year, while operating income in Japan increased by 21.2%. Operating income in the US, Saudi Arabia, Brazil and the Netherlands increased by 43.9%, on an adjusted basis. EPS rose by 24.3% year over year, to ¥67.55, which was lower than ¥73.24 projected at the start of the fiscal year.