Japanese cosmetics group Kao had a 20 per cent surge in net income last year, led by strong performances at home and in Asia.

Still, the cosmetics group says it is being careful this year, citing market concerns because of rising of anti-globalisation trends.

Its net income rose 20.3 per cent to ￥126.6 billion (US$1.1 billion), last year while profits from exports rose 11 per cent to ￥185,6 billion.

While it saw a positive impact from cost-reduction measures, Kao says it was hit by less-than-lacklustre market conditions and currency fluctuations.

Net sales dropped slightly by 1.1 per cent to ￥1457.6 billion. Excluding the effect of currency translation, there would have been a 3.2 per cent increase, says Kao.

Like competitors including Shiseido, Kao continues to profit from Asian tourists in Japan who receive tax breaks on “Made in Japan” beauty products.

In Asia, where the company markets to the middle class, sales were slightly down, but up 13 per cent on a constant exchange rate basis.

Kao anticipates modest sales growth of 9 per cent this year to ￥1470 billion.