PARIS — Kao Corp. adjusted profit forecasts upward for the first half of this year, due to increased sales primarily in its human health care business in Japan and the consumer products business in Asia, plus a delay in some marketing expenses and other expenditures.
The Japanese beauty giant estimated Friday that its net profits rose 7.4 percent in the six months ended June 30 to 34 billion yen, or $292.4 million. The company had made an earlier forecast, in April, that profits would come in substantially lower, at 26 billion yen, or $223.6 million.
Operating income for the company is expected to be 60.1 billion yen, or $516.9 million, a 21.8 percent gain on the same prior-year period. Kao had formerly forecast operating profits in the period to be 49.35 billion yen, or $424.4 million.
Kao’s sales are projected to be 695.2 billion yen, or $5.98 billion, a figure down 6.9 percent from what had been announced in April.
Dollar figures are converted at average exchange for the period to which they refer.
The company, meanwhile, maintained its guidance for the 12 months ending Dec. 31. It expects net income to grow 9.3 percent to 87 billion yen, or $701.6 million at current exchange.
Kao predicts operating income will expand 12.6 percent to 150 billion yen, or $1.21 billion, and forecasts a net sales increase of 4.9 percent to 1.47 trillion yen, or $11.86 billion.
The company will release its actual six-month results on Tuesday.