Latest Results

Consolidated Financial Results for the Fiscal Year Ended December 31, 2023 (January 1, 2023 to December 31, 2023)

During the fiscal year ended December 31, 2023, Nippon Paint Group saw a 10.2% rise in consolidated revenue from the previous year to ¥1,442,574 million. This increase primarily resulted from the normalization of economic activities in the decorative paints business in China, a principal area of business for Nippon Paint Group, subsequent to the lifting of lockdowns and pandemic-related limitations. Additionally, consolidated operating profit surged by 50.8% to ¥168,745 million. This increase was mainly due to the enhanced gross profit margin, propelled by the positive effects of the flow-through of price increases and the absence of credit loss provision in China, which was recorded in the previous year. Consolidated profit before tax saw a 54.6% increase to ¥161,500 million. Furthermore, profit attributable to owners of parent surged by 49.2% to ¥118,476 million.

Japan

Revenue for automotive coatings increased from the previous year, mainly attributed to the continued recovery in automobile production. Revenue for industrial coatings remained steady despite the flow-through of price increases, owing to softer market conditions compared to a year ago. Revenue for decorative paints increased from the previous year due to the flow-through of price increases. This growth occurred despite the impact of consumer spending restraint and the sift in demand to economy products in reaction to inflation.
Consequently, there was an 8.3% increase in consolidated revenue from the previous year to ¥201,493 million, while consolidated operating profit increased by 261.9% to ¥19,165 million.

NIPSEA

Revenue for automotive coatings increased from the previous year, attributed partly to the market share gains at automobile manufacturers and automotive parts manufacturers, which partially offset the sluggish automobile production, particularly among Japanese automobile manufacturers amid the expanding electric vehicle market. Decorative paints revenue saw an increase driven by the normalization of economic activities in China post-lockdowns, sustained demand for repainting interiors of existing homes in China, and the flow-through of price increases in key markets such as Singapore, Malaysia, and Indonesia.
Consequently, consolidated revenue increased by 8.9% from the previous year to ¥771,518 million, and consolidated operating profit rose by 51.8% to ¥110,385 million.

DuluxGroup

The earnings of DP JUB delniska druzba pooblascenka d.d. have begun contributing to the full-year results. The increase in revenue from decorative paints was driven by the flow-through of price increases in the Pacific and Europe, overcoming weaker consumer demand influenced by interest rate hikes. Moreover, revenue in the adjacencies business exceeded last year’s figures, propelled by the flow-through of price hikes in the Pacific region, even amid slow ETICS (External Thermal Insulation Composite Systems) sales due to decreased government incentives in Europe.
Consequently, consolidated revenue saw a 14.4% rise from the previous year, reaching ¥360,398 million, while consolidated operating profit climbed by 16.7% to ¥34,619 million.

Americas

Automotive coatings revenue saw a rise over the last year, fueled by a rebound in car manufacturing in the United States, a key area for the automotive coatings industry, particularly among Japanese automobile manufacturers and the flow-through of price increases. Revenue for decorative paints remained unchanged, attributed to the economic slowdown and housing market deceleration in the United States, as well as adverse weather conditions in California.
As a result, consolidated revenue increased by 9.7% from the previous year to ¥109,164 million. Consolidated operating profit decreased by 11.5% to ¥7,149 million, primarily due to the absence of a gain on the sale of fixed assets recorded in the previous year.

Revenue composition

Revenue composition by region (Million yen) ■Japan: 201,493 ■NIPSEA: 771,518 ■DuluxGroup: 360,398 ■Americas: 109,164	Revenue composition by business (Million yen) ■Automotive coatings: 182,411 ■Decorative paints: 909,678 ■Industrial coatings: 90,196 ■Fine chemicals: 20,251 ■Other paints: 80,964 ■Paint related business: 159,072

Revenue (cumulative results)

Nippon Paint Group revenue has grown steadily through the acquisitions of paint manufacturers in the United States in FY2017 and in Australia and Türkiye in FY2019 along with the successful growth of the decorative paints business in China and other Asian countries. In FY2021, we achieved revenue growth driven by the acquisition of the Indonesia business, flow through of selling price increases in every region, and the weaker yen. In FY2022, we delivered revenue growth for six consecutive years and a record revenue due to continuous selling price increases and new consolidations mainly in the decorative paints business, as well as FX.

(Million yen)

*1: Following the business transfer to the Wuthelam Group announced on August 10, 2021, the European automotive coatings business and the two India businesses have been classified as discontinued operations. Figures for the 3Q FY2020 cumulative period and full year FY2020 have been adjusted retrospectively to the amounts for continuing operations.
*2: Following the business transfer to the Wuthelam Group announced on August 10, 2021, the European automotive coatings business and the two India businesses have been classified as discontinued operations. Figures for the 1Q FY2021, 3Q FY2021 cumulative period, and full-year FY2021 are the amounts for continuing operations excluding discontinued operations.
*3: Hyperinflation accounting has been applied for our Turkish subsidiaries beginning with FY2022 2Q. The figures for FY2022 and FY2023 are adjusted for the application of this accounting policy.

Operating profit (cumulative results)

Group operating profit reached a record high in FY2020 due to the benefits of acquisitions and growth of the Chinese business. Group operating profit remained at the same level in FY2021 due to higher revenue and the reduction of fixed costs, despite raw material price increases and provisions for potential credit loss in China. Group operating profit increased in FY2022 to exceed the FY2020 level and reach a new record high due to higher revenue driven by the flow through of selling price increases, despite raw material price increases, an additional credit loss provision in China, and an application of hyperinflation accounting.

(Million yen)

*1: Following the business transfer to the Wuthelam Group announced on August 10, 2021, the European automotive coatings business and the two India businesses have been classified as discontinued operations. Figures for the 3Q FY2020 cumulative period and full year FY2020 have been adjusted retrospectively to the amounts for continuing operations. Figures for the full year FY2020 have been adjusted retrospectively to reflect a change in the accounting policy for configuration or customization costs in a cloud computing arrangement implemented beginning with the 4Q FY2021.
*2: Following the business transfer to the Wuthelam Group announced on August 10, 2021, the European automotive coatings business and the two India businesses have been classified as discontinued operations. The figures for FY2021 are amounts for continuing operations excluding discontinued operations. The figures for FY2021 have been adjusted to reflect a change in the accounting policy for configuration or customization costs in cloud computing agreements implemented beginning with 4Q FY2021.
*3: Hyperinflation accounting has been applied for our Turkish subsidiaries beginning with FY2022 2Q. The figures for FY2022 and FY2023 are adjusted for the application of this accounting policy.

Profit attributable to owners of parent (cumulative results)

Profit attributable to owners of parent rises or falls roughly in line with changes in earnings, such as operating profit. In FY2021, net profit increased significantly as a result of the full integration of the Asian JVs and the acquisition of the Indonesia business. In FY2022, net profit increased due to higher operating profit driven by the flow through of selling price increases and other factors.

(Million yen)

*1: Figures for the 1Q and full year FY2020 have been adjusted to reflect a change in the accounting policy for configuration or customization costs in a cloud computing arrangement implemented beginning with the 4Q FY2021.
*2: The figures for FY2021 have been adjusted to reflect a change in the accounting policy for configuration or customization costs in cloud computing agreements implemented beginning with 4Q FY2021.
*3: Hyperinflation accounting has been applied for our Turkish subsidiaries beginning with FY2022 2Q. The figures for FY2022 and FY2023 are adjusted for the application of this accounting policy.

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