Latest Results

Consolidated Financial Results for the Six Months Ended June 30, 2024 (January 1, 2024 to June 30, 2024)

For the six months ended June 30, 2024, Nippon Paint Group’s consolidated revenue increased by 17.9% compared to the same period last year, reaching ¥817,143 million. This growth was largely driven by higher sales volumes in China and other key markets for NIPSEA Group, and with the depreciation of the yen providing additional support.
Consolidated operating profit increased by 12.8%, reaching ¥94,490 million, while profit before tax saw a 12.2% increase, to ¥91,922 million. Furthermore, profit attributable to owners of parent grew by 8.9%, to ¥66,339 million.

Japan

In Japan, revenue from automotive coatings decreased due to reduced automobile manufacturing. Industrial coatings revenue remained stable compared to a year earlier as the positive impact of price increases offset weaker market conditions. Revenue from decorative paints fell, largely as a result of the consumer spending restraint and a shift towards lower-priced products driven by inflation, despite the flow-through of price increases and successful implementation of sales promotion measures.
As a result, consolidated revenue dropped by 0.0% from the previous year to ¥97,280 million. However, consolidated operating profit rose by 13.8% to ¥9,049 million, benefitting from an improved gross profit margin due to the successful implementation of price increases.

NIPSEA

NIPSEA Group experienced an increase in automotive coatings revenue, despite a decline in automobile manufacturing in Thailand, thanks to higher automobile production levels in China. Additionally, revenue from decorative paints saw an uptick, fueled by increased sales volumes in China and other key markets, including Malaysia, Singapore, and Türkiye.
As a result, consolidated revenue increased by 22.9% from the previous year to ¥458,279 million, and consolidated operating profit increased by 16.1% to ¥63,734 million.

DuluxGroup

Revenue from decorative paints increased, largely supported by the depreciation of the yen, despite lower sales volumes due to softened market conditions in the Pacific and Europe. Revenue from the adjacencies business also grew, despite soft market conditions, due to contributions from new acquisitions in the Pacific and European adjacencies manufacturer N.P.T.s.r.l., which was acquired in July 2023.
As a result, consolidated revenue rose by 16.3% year-on-year to ¥198,483 million. Consolidated operating profit increased by 0.5% to ¥18,563 million, primarily due to an improved gross profit margin, despite an increase in SG&A expenses driven by inflation.

Americas

In the Americas, revenue from automotive coatings revenue saw an uptick, driven by a recovery in automobile production in the United States, a core market for this segment, along with the successful implementation of price increases. Despite a slowdown in the U.S. economy and housing market, revenue from decorative paints also increased, thanks to the flow-through of price increases and a reduced impact from unfavorable weather in California compared to the same period a year earlier.
As a result, consolidated revenue increased by 21.4% from the previous year to ¥63,100 million, while consolidated operating profit climbed by 40.4% to ¥4,844 million.

Revenue composition

Revenue composition by region (Million yen) ■Japan: 97,280 ■NIPSEA: 458,279 ■DuluxGroup: 198,483 ■Americas: 63,100	Revenue composition by business (Million yen) ■Automotive coatings: 91,945 ■Decorative paints: 536,345 ■Industrial coatings: 47,382 ■Fine chemicals: 10,867 ■Other paints: 44,414 ■Paint related business: 86,188

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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