We would like to start with page four key highlights. 2026 will be a year in which we further enhance our sustainable earning power and accelerate our transition to growth. We will increase the likelihood of achieving the K27 while building the foundation for the step change growth that lies beyond. In the first quarter, centered on the GC Business, our profit-generating capabilities became firmly established both domestically and internationally, enabling us to further strengthen our earnings base. Net sales was JPY 413.2 billion, up 2.5% on a like-for-like base, excluding the foreign exchange effects. Operating income was JPY 44.9 billion, with an operating margin of the 10.9%, up JPY 14 billion year- on- year, and a significant improvement of the 3.0 percentage points.
As a first step toward the optimizing our logistics operations, we sold land and recorded the gain of JPY 11.5 billion. However, even excluding this, we secured a steady profit growth, and we view this as improvement in organic growth. ROIC was at 10.1%, an improvement over the 2.6 percentage point year-over-year. The result, our ROIC-focused management are steadily becoming apparent. In the overseas GC Business, sales increased in key focus areas such as Cosmetics in Asia and Health and Beauty Care in the Americas, and the growth model is taking solid shape. From the second quarter, we will strive to accelerate the growth and expand the profit contribution to our focus businesses while advancing the selection and concentration of our overseas business to face challenges expeditiously.
Although we are currently seeing the changes in the external environment, we are mitigating the impact through agile management that leverages the Kao's integrated operations from upstream to downstream, including the chemicals business, and we are maintaining our full year earnings forecast at this time. Progress toward achieving K27 is proceeding as planned and with even better prospective for success. Please move on to page six. First quarter sales were JPY 413.2 billion, up 6% year-on-year and up 2.5% on a like-for-like basis, excluding the foreign exchange effects, securing the steady growth in both volume and price. The gross profit margin improved by 0.4 percentage point year-on-year to 38.4%, reflecting the steady result of our efforts to increase our value added and control costs.
Operating income was JPY 44.9 billion, an increase of JPY 14 billion year-over-year, and the operating margin improved significantly to 10.9%. We also secured an increase in profit on the business basis, excluding the gains on land sales, indicating the steady progress in improving our profitability. Net income attributable to the parent company was JPY 31 billion, and EPS increased significantly by 39.3%, reflecting how profit growth is translating into enhanced shareholder value. Page seven, please. Sales results. Here is the breakdown of the first quarter fiscal year 2026 net sales of JPY 413.2 billion, up 2.5% on a like-for-like basis. The GC Business saw a 3.9% increase in sales on a like-for-like basis, driven by the strong Japanese market.
In Japan, overall GC sales increased by 5.8% with a growth across the major categories of Health and Beauty Care up 7.6%, Fabric and Home Care up 7.3%, and Cosmetics up 4.9%. We are supporting the sales growth in both volume and price through the introduction of the high value-added products and appropriate pricing strategies. Overseas, while overall performance remained flat due to the operations focused on profitability, we are seeing steady growth in our priority areas. Cosmetics grew in Asia and Health and Beauty Care in the Americas, we are beginning to see results in our focus areas. We are optimizing some businesses and strengthening our earnings based through selection and concentration.
Net sales of the chemicals business declined due to the sluggish demand in Europe and the United States, but high value-added areas such as electronic materials are performing quite well. Page eight, please. There are three focus segments. First is Cosmetics. Driven by our six key brands, we saw growth in both Japan and China, and as a result of the structural reforms, we achieved the profitability for the first time in four years. Second is Fabric and Home Care. By enhancing the value and improving the brand loyalty in the Japanese market, we are continuing to increase the operating income while maintaining the high operating margin. Third is Chemicals Segment. Although we reported a decline in both net sales and operating income, this was primarily due to the time lag in passing on the price increases for oil and fat products in Europe and the United States.
There has been no change in our competitiveness. Currently, the price increases for the products other than the oil and the fat products in Europe and the United States are also contributing to our results. Starting in the second quarter, we anticipate a recovery driven with the progress in passing on the price increases for the petrochemical products and oil and fat products, as well as a growth in electronic materials. Page nine, analysis of the operating profit changes: t his is an analysis of the change from first quarter fiscal year 2025 operating income of JPY 30.9 billion to the first quarter fiscal year 2026 operating income of JPY 40.9 billion, up JPY 14 billion. Overall, the result exceeded our plan, confirming that the improvements in our earning power are steadily translated into the stronger performance.
Let me explain the earning power and growth strategies respectively. First, the effect of the improved profitability in the GC Business was JPY 5.5 billion. This is due to the sales price revision, as well as improvements in cost of the sales, such as TCR effects and the changes in the product mix and the cumulative impact of the raw material prices. Next is a contribution from our growth strategy. Volume in the GC Business grew by 2.9% year- on- year, resulting in the profit increase of JPY 5 billion. Even after deducting the marketing investment, this resulted in net increase of the JPY 2.0 billion. In the Chemicals Business, the profits declined due to the temporary factors such as delays and the passing on the price increases, but improvements are on its way.
Selling and general and administrative expenses were kept under control and the favorable exchange rates also contributed, enabling the business as a whole to achieve the stable margin. As a result, excluding gains on land sales, operating income increased by JPY 2.5 billion, including the gains on land sales of JPY 11.5 billion, the year-on-year change was recorded at JPY 14 billion. Page 10, the further improvement. Despite the impact of the fluctuation in raw materials prices, the gross profit margin has improved due to the introduction of the high value added products and cost reduction activities. The gross margin improved by 0.4 percentage points to 38.4% from the previous year. In the GC Business in particular, the margin improved by 1.9 percentage points progressing at the pace that exceeds the annual target.
This improvement stems from the combination of the price revision, value added initiatives, and cost reduction efforts, indicating a shift toward the sustainable earnings structure rather than a one-time gain. Going forward, we will continue to steadily build on cost reduction and the pricing strategies to enhance the sustainability of profit growth. Please turn to page 11. The GC business in Japan has steadily strengthened both competitiveness and the earning space through high value-added proposals and enhanced brand power. In Q1, under a consistent brand concept, we continued proposing high value-added products, strengthening brand loyalty while also expanding cross-category sales. In H&PC, Kao's market share exceeded the previous year for 33 consecutive months, and this very long momentum is continuing. In laundry detergents, market share further expanded to 47%, continuing share gains in key categories.
This reflects the results of portfolio management with a clear strategic focus responding to consumer polarization, delivering value through both the high premium price segment and the mass market price segment. In Cosmetics, the six focus brands achieved 10% growth while the market contracted by 2%, thus expanding market share and strengthening brand presence. The accumulation of growth built on the strong loyalty of each brand is contributing to enhanced competitiveness of the overall business. Going forward, we will further strengthen our advantages in strong categories while achieving sustainable expansion in both scale and profits through new value creation.
Please turn to page 12. Bioré's key new products driving new value creation received third-party awards. Going forward, we will continue enhancing brand value through acquiring this kind of third-party recognition. Please turn to page 13. Outside Japan, we achieved steady profitable growth through focused investments in key brands and strategic areas. As shown here, growth has been achieved across regions centered on priority areas. First, in cosmetics, while strengthening global collaboration and advancing the three strategic expansion models, KATE ramped up new product rollouts in tandem with Japan, starting in Thailand. Curél steadily expanded in major retail chains in the Americas and Europe. In skin protection, Bioré UV expanded distribution nationwide through strategic retail chains in North America and the Americas. In Asia as well, new products served as a hook for expanded rollout and increased sales in ASEAN.
In self-tanning, the two brands, Jergens and Bondi Sands, achieved higher than market growth in the U.S. the largest market, with expanded distribution and demand acquisition progressing steadily. Jergens face and skincare also expanded mainly in the U.S. achieving steady growth of positive 8% year-on-year. In sanitary products, Laurier expanded in Asia, led by China, while also securing positive growth in highly competitive Indonesia. In chemicals, electronic materials are growing globally, particularly in East Asia, supported by expanding demand for generative AI and data centers. In this way, outside Japan, concentrating management resources in priority areas is steadily establishing successful growth models. We will continue accelerating growth along this axis going forward. Please turn to page 14. In the Chemical Business, the recent decline in profit is due to temporary factors, and the measures for recovery are clear.
First, the business portfolio consists of four areas, oleo chemicals, consumer care chemicals, performance chemicals, and information materials. Oleo chemicals and consumer care chemicals support the business base, while performance chemicals and information materials serve as highly profitable growth drivers. In Q1, in oleo chemicals, price pass-through in response to rising raw material costs progressed in Asia while it was delayed in the Americas and Europe, leading to shrinking profit margins. Demand adjustments in performance chemicals continued mainly in the Americas and Europe. On the other hand, in information materials, electronic materials performed steadily in high value-added domains, mainly in Japan and Asia, supported earnings. From Q2 onward, increase in price pass-through in the Americas and Europe is expected to support profit recovery in oleo chemicals. In consumer care chemicals, performance chemicals, and information materials, we will strengthen the expansion of high value-added products and improve profitability.
To reiterate, the recent downturn in profit was mainly caused by delays in price pass-through in the Americas and Europe and is not a structural issue. Also, anticipated rises in raw material costs associated with the Middle East situation will also be addressed through price pass-through, high value-added products, and TCR. Please turn to page 15. To give you the conclusion first, even amid raw material sourcing risks, Kao's integrated supply chain management is currently expected to ensure planned supply volumes for the year. Uncertainties remain high with raw material price fluctuations, supply instability and demand fluctuations as well as the current Middle East situation, so we will continue to closely monitor their impact. We have built end-to-end integrated operations from upstream to downstream that enable adaptation to changes in the external environment.
Specifically, this includes technological capabilities enabling rapid response through alternative raw materials and formulation changes, procurement capabilities leveraging global networks, production and supply capabilities utilizing an SCM database, and pricing adaptability leveraging strong brand power and proprietary sales channels. Kao's competitive advantage lies in its integrated business model with both the Chemical and GC businesses enabling end-to-end optimized operations from raw materials to supply of finished products. Through these comprehensive capabilities, we will ensure stable supply, flexible response to demand fluctuations, and minimization of impacts on business results while we continue investment in growth. Based on all of that, an outlook for secure supply, the full year forecast of consolidated results remains unchanged at this time. Please turn to page 16. In Q1, we confirmed the repeatability of our earning power, marking a solid step toward accelerating the shift to growth.
Fiscal 2026 is an important year to translate that earning power into growth and increase the certainty of achieving K27. While uncertainty remains in the external environment, we will leverage Kao's business portfolio and comprehensive capabilities to respond flexibly and aim to achieve our full year plan. Please turn to page 19 of the appendix. Lastly, I'd like to briefly report on the extraordinary general meeting of shareholders held on April 30th. Although the shareholder proposal was rejected, we do not view this result simply in terms of winning or losing. We sincerely recognize once again the societal interest in the palm supply chain and the weight of accountability expected of Kao. With this in mind, we will clearly advance four initiatives going forward. First, achieving full traceability. Second, further expanding the grievance mechanism. Third, enhancing disclosure on forest-related procurement. Fourth, conducting an independent third-party review.
Kao aims to realize a sustainable and highly transparent supply chain from raw material production sites to finished products. We believe this is not merely a defensive response, but rather Kao's responsibility as a company that continues to earn the trust of consumers and also a source of future competitiveness. That's all from me. Thank you very much.