By  on October 30, 2013

TOKYO — Kao Corp. said Wednesday that its nine-month net profit fell slightly on costs related to a recent product recall at its Kanebo unit but operating profit and sales grew for the period.

Kao said net profit for the nine months ended Sept. 30 fell 0.5 percent to 39.55 billion yen, or $409.76 million at average exchange rates for the period, compared with restated results for the same period a year earlier. The company recently changed its fiscal year end from March 31 to December 31.

Kao said costs associated with Kanebo's voluntary recall of over fifty skin brightening products hurt its profits. Earlier this year, Kanebo received complaints that the recalled products left white splotches on the skin. Kao said it has booked costs and losses of 11.3 billion yen, or $117.07 million on the recall.


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