Kao Corporation will start buying back its own shares this week.
The Japanese consumer goods company said the move is aimed at improving capital efficiency and giving more returns to shareholders.
The board approved the plan on August 6, 2025.
The buyback starts August 7 and will run until January 30, 2026.
Kao will repurchase up to 15 million shares of its common stock.
That’s about 3.2% of the total outstanding shares, excluding treasury stock, as of June 30 this year.
The maximum budget for the program is set at 80 billion yen.
The company did not say exactly when or how fast the purchases will happen within the period.
As of the end of June, Kao had just under 90,000 treasury shares already on its books.
Total shares outstanding stood at 465.81 million.
Stock buybacks are a common way for companies to return money to shareholders.
They can also help lift earnings per share by reducing the number of shares on the market.
The move comes as Kao looks to manage its capital more efficiently.
It is also part of a broader trend among Japanese firms to increase shareholder returns.
Investors will be watching the pace of the buyback in the coming months.
The market will also look for any signs that Kao’s move is linked to longer-term changes in strategy or balance sheet structure.
The company did not provide further details in today’s filing.
For now, it’s a clear signal: Kao wants to use some of its resources to buy back stock and tighten its capital structure.