Latest Results

Consolidated Financial Results for the Three Months Ended March 31, 2024 (January 1, 2024 to March 31, 2024)

For the three months ended March 31, 2024, Nippon Paint Group’s consolidated revenue increased by 16.4% compared to the same period last year, reaching ¥384,319 million. This growth was primarily driven by an increase in sales volume within our core business, the decorative paints segment in China, and was further supported by the depreciation of the yen.
Consolidated operating profit increased by 22.2% to ¥42,664 million, while profit before tax rose by 23.6% to ¥41,344 million. Additionally, profit attributable to owners of parent increased by 19.5% to ¥30,280 million.

Japan

Revenue from automotive coatings decreased due to a decline in automobile manufacturing. Meanwhile, industrial coatings revenue remained stable, with the impact of flow-through of price increases offset by softer market conditions compared to the previous year. Despite the flow-through of price increases, revenue from decorative paints decreased due to consumer spending restraint and a rising demand for lower-priced products due to inflation.
Consequently, consolidated revenue fell by 1.2% from the previous year to ¥46,445 million. However, consolidated operating profit increased by 40.7% to ¥3,709 million, benefitting from an improvement in gross profit margin driven by flow-through of price increases.

NIPSEA

Despite a decrease in automobile manufacturing in Thailand, automotive coatings revenue within NIPSEA Group increased due to higher automobile production in China. Additionally, revenue from decorative paints rose, driven by ongoing demand for repainting interiors of existing homes in China. This increase was further supported by higher sales volumes and flow-through of price increases in key markets, including Malaysia, Singapore, and Tϋrkiye.
As a result, consolidated revenue increased by 21.5% from the previous year to ¥216,250 million, and consolidated operating profit grew by 28.0% to ¥31,431 million.

DuluxGroup

Revenue from decorative paints increased, buoyed by the yen’s depreciation, despite sluggish sales volumes resulting from softening market conditions in the Pacific and Europe. Meanwhile, revenue from the adjacencies business grew due to higher sales volumes of External Thermal Insulation Composite Systems (ETICS) in Europe. This growth was further supported by contributions from new acquisitions in the Pacific and European adjacencies manufacturer N.P.T. s.r.l., whose acquisition was completed on July 6, 2023.
Consequently, consolidated revenue rose by 13.9% over the previous year to ¥93,120 million, while consolidated operating profit fell by 1.5% to ¥7,181 million, mainly attributed to an increase in SG&A expenses due to inflation.

Americas

Revenue from automotive coatings rose, fueled by a rebound in automobile production primarily by Japanese-based automakers in the United States, a key region, and the flow-through of price increases. Despite the slowdown in the US economy and housing market, revenue from decorative paints also increased, thanks to a lesser impact from unfavorable weather in California compared to the same period a year earlier.
As a result, consolidated revenue climbed by 21.6% from the previous year to ¥28,503 million, while consolidated operating profit increased by 60.6% to ¥1,196 million.

Revenue composition

Revenue composition by region (Million yen) ■Japan: 46,445 ■NIPSEA: 216,250 ■DuluxGroup: 93,120 ■Americas: 28,503	Revenue composition by business (Million yen) ■Automotive coatings: 44,768 ■Decorative paints: 250,215 ■Industrial coatings: 21,815 ■Fine chemicals: 5,208 ■Other paints: 21,487 ■Paint related business: 40,825

Revenue (cumulative results)

Our revenue growth has accelerated due to the accumulation of assets through multiple M&As executed since 2017, as well as the substantial growth of our decorative paints business in Asia, particularly in China. In 2023, we achieved seven consecutive years of revenue growth and record-high revenue, due to increased sales volumes and the flow-through of price increases, primarily in the decorative paints business, along with new consolidation of NPT and the yen's depreciation.

(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)

Since 2020, our operating profit has seen growth for four consecutive years, keeping pace with our revenue increase. Despite the influence of hyperinflationary accounting in Türkiye, our operating profit reached a record high in 2023, thanks to the growth in revenue and improvement in gross profit margin.

(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 generally aligns with the trends in operating profit and various stages of profit. Since 2020, it has increased steadily for four consecutive years, driven by the growth in operating profit resulting from increased revenue.

(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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