Please look at the slides and turn to page five, which is the highlights of consolidated financial results. Net sales grew by 0.3% and was JPY 347.8 billion. Excluding the effect of currency translation, this is a 3.8% like-for-like reduction. Operating income was JPY 7.3 billion, which is a reduction of 68.3% year-on-year. Operating margin was 2.1%. Net income attributable to owners of the parent was JPY 4.8 billion, which is a year-on-year decline of 73.6%. Basic earnings per share was JPY 10.36, which is a reduction of 73.1% year-on-year. Please turn to page six, key points of Q1 results. Looking back on the first quarter, operating income declined significantly from the previous year. In the household and personal care business, price increases offset 90% of the impact of high material prices.
Due to decrease in sales in underperforming categories and the impact of consumers stocking up on products following the year-end campaign, volume decreased, and that led to a decrease in profits. In the cosmetics business, the Japanese market was on a recovery trajectory, and G11 posted two-digit growth. In the Chinese market, operating income declined because of the curb on shipments of existing products. In the chemicals business, because of the disruption in logistics last year, especially in the Americas and Europe and the ensuing slowdown in the economy, inventory built up and demand became sluggish. Because of that, there was a significant decline from the previous year. For profits in the consumer products business, it was as planned, and in the chemicals business, it aggravated more than we had expected.
I will talk about the analysis and the measures to be taken from the second quarter onwards to achieve the disclosed targets later on in the presentation. Please turn to page seven for the sales results. This is the by segment, by area, consolidated net sales by segment and geographic regions of the total of JPY 347.8 billion in net sales. This is shown in a table format. For the consumer products business overall, the total was JPY 265.3 billion, which is a 2.3% decline on a like-for-like basis. The chemical business was JPY 93.2 billion, which is a like-for-like decline of 7.4%. The chemicals business sales reduction includes the reduction of oil and fat prices. In the consumer products business following last year, Asian and Chinese market, the diaper business was struggling, and the cosmetics rebranding leading to a curb on shipments, had a major effect on the decline in profits.
The health and beauty care business in Americas and Europe, for both skincare and salon businesses, we saw a major increase because of the bad results of the previous year. Please turn to page eight for the consolidated results by segment. Because of the soaring material prices, we have been increasing prices since the second quarter of 2022. In order to make the effect of price increases clearer, we decided to disclose the like-for-like change in volume and price for each segment. Hygiene and living care business is impacted most by soaring material prices. The contribution of prices to net sales is increasing in this business, which shows that we are implementing price increases steadily. The breakdown of the JPY 7.3 billion in operating income is shown by segment. In the first quarter, the life care business and cosmetics businesses post net losses.
The analysis of year-on-year change will be shown in detail in the next page. I will omit the details here. Please turn to page nine, which is the analysis of change in operating income for the first quarter, which is the analysis of operating income decline of JPY 15.7 billion. Increases are shown in green, decreases are shown in gray. As you can see, in the household and personal care business, there was the negative impact of JPY 5.5 billion of the soaring material prices, but JPY 5 billion of that was offset by the increase in prices. On the other hand, the decrease in sales in underperforming categories and the impact of consumers stocking up on products had a major impact. Volume had a negative impact of JPY 4 billion. In total, a negative impact of JPY 4.5 billion.
For cosmetics, because of reduced shipments and sales of existing products at reduced prices before the freeplus branding, in total, there was an impact of minus JPY 4 billion. The marginal profit of the chemical business was reduced by JPY 6 billion, and the cosmetics business structural reform costs had an impact of JPY 1 billion in total, leading to JPY 7.3 billion. Please turn to page 10 for the forecast of changes in operating income. For the second quarter, material prices are expected to continue to increase from the previous year. We see the second quarter as a transition period in which we implement strategic price increases and pursue volume as well.
In the second quarter, in the household and personal care business, the material prices will increase JPY 4 billion. The price increases will have a positive impact of JPY 6 billion. The volume will push up the results by JPY 1 billion. In the cosmetics business, likewise, the material increase will be JPY 500 million. The price increase will have an impact of JPY 1 billion. The volume, because of the freeplus branding and the new product expansion in sales, will lead to an increase of JPY 3.5 billion year-on-year. In the chemicals business, the Americas and Europe inventory reduction will be promoted. Q2 will be a transition period. Last year's results were very good and therefore will not go back to the previous level. However, under this situation, the marketing costs and the SG&A will increase. We will proactively capture opportunities arising from market recovery.
As a result, JPY 24.7 billion, which is a decrease of JPY 6 billion from the previous year. For the first half, compared to the previous year, it will be JPY 21.7 billion. As we have been saying, we will be catching up in the second half. There are three points. First, further strategic increases in price. Second, recovery of cosmetics. Third, the price increase in chemicals business. Please turn to page 11 for the changes in raw material prices and effects of price increases. We have two graphs here. There are three points here. Please turn to the left-hand side graph. The left-hand side graph is a line graph which shows you an image. The second quarter is a transition period. From July onwards, the material cost will decrease from the previous year.
Furthermore, we will increase prices for more products, and we are planning to increase our profits by JPY 13 billion. The second point is the bar graph. From Q3, inorganic and other materials, material cost will come down significantly compared to the previous year. In this area, the hygiene and living care business will contribute to an improvement in margin. The third point is the graph on the right-hand side. As of the end of this year, the price increases will cover only 60% of raw material price increases since 2021. Currently, the price negotiations are proceeding smoothly with the understanding of retailers. Please turn to page 12 for the measures from Q2 onward for the household and personal care business. In the market, partly due to the normalization after COVID, we are seeing recovery globally.
In Japan, there are more opportunities to go out, and we saw an increase year-on-year of two digits in UV care products, and makeup removers and styling products grew by 5%. Under this situation in the household and personal care business, Kao's original new value offering for laundry will be presented at the time of new product launch. With it, we are planning to realize market revitalization and high value add. Please look forward to these measures. In addition to that, currently the sunscreen market is growing over 40%, and Bioré grew by over 80%, and share is expanding as well. In particular, Bioré UV Mist is a big hit. As a single product, it is number 1 in the market in terms of sales. Bioré New Oil Makeup Remover achieved the annual target in the second week since launch.
In the entire category of market removers, we are expecting double-digit growth from the previous year. For in-bath products, Essential Barrier Shampoo showed a very good start, achieving twice the share of the target at multiple major drugstores. We will continue to launch and develop high value add and new or improved products to expand profits. Please turn to page 13 for the increases in market share and unit price from high value added products and marketing innovations. Kao's major products, Attack, CuCute, and Bioré UV, have steadily increased value add, and as a result, they increased both share and unit price. For Laurier, with the renewal in marketing initiatives, we were able to enhance brand resonance, and share increased as a result.
As I mentioned when I talked about increases in material prices, as the prices are now stabilizing compared to the previous year, the profitability of these major products will turn to recovery. Please turn to page 14, which shows the measures from Q2 onward for the cosmetics business. The cosmetics market, with the progress toward end of mask wearing, is seeing recovery in the makeup market. In particular, the lipstick market was down to 40% of 2019, but now it is back to 60% or more. The makeup base market was down to 60% of the 2019 level. Now it is back to around 80%. If you look at the inbound demand, Chinese visitors to Japan is still 11% of 2019. Inbound demand at department stores is on the rise. For measures for Q2 onwards in Japan, the priority is growth of prestige brands.
KANEBO is showing good results after rebranding. With the hits of the UV serum and cream foundation products launched last year, KANEBO is seeing an increase in customers, and the lotion that was launched last year is further enhancing that trend. LUNASOL is continuing to do well in eyeshadow products, and RMK new foundation is doing well as well. For LIP MONSTER, because of a shortage in stock, we caused inconveniences to our customers. However, we will increase production capacity by 50%. Communication for Primavista was strengthened from April, and we will establish a position for Primavista as the makeup base brand. In China, because of the freeplus rebranding and strengthening of evidence-based marketing, we will target two digit growth. Page 15 is measures from Q2 onward for the chemicals business. In the chemicals business, the challenge is demand in Americas and Europe.
Q2 is a transition period, and we expect recovery from Q3 onwards. For measures for Q2 onwards, by adding facilities for high profit products, we will strengthen supply of over-demand markets and increase profits. In the global market in tertiary amines, Kao has a number one position. A jasmine fragrance, MDJ or methyl dihydrojasmonate, is a product in which we have a number two position globally. We will start to expand capacity from Q3 to expand sales, and we will improve profitability for information materials and others, and at the same time, increase prices for surfactants to improve profitability. Our highly durable asphalt modifiers are contributing to ESG, so this product and adjuvants for aerial spraying of agrochemicals will contribute to expansion of business.
Last year, in the second half of last year in the chemicals business, we saw a deceleration of the economy and the sudden decrease in oil and fat prices, and that led to valuation loss and inventory, and that aggravated profitability very quickly. This year, we will implement the measures I mentioned, and we are planning for recovery up to the level that is slightly above the average year. Next is the upcoming event. On August 3rd, we will have a Q2 results meeting, and at the same time, we will have midterm plan progress, growth strategy, and structural reform briefing sessions at the same time. Before or after that, we will have a briefing session on the three business areas in the growth driver area. That is all from my side.