Latest Results

Consolidated Financial Results for the Nine Months Ended September 30, 2024 (January 1, 2024 to September 30, 2024)

For the nine months ended September 30, 2024, Nippon Paint Group reported a consolidated revenue increase of 12.6% year-on-year, to ¥1,222,747 million. This growth was primarily propelled by increased sales volumes within NIPSEA Group, particularly in China and other key markets. The favorable depreciation of the yen also contributed positively to the financial results.
Consolidated operating profit rose by 7.7%, to ¥141,758 million, supported by revenue growth and an enhanced gross profit margin resulting from the flow-through of price increases. Profit before tax also increased by 6.8%, reaching ¥135,659 million. Additionally, profit attributable to owners of parent increased by 5.1%, to ¥98,203 million.

Japan

In Japan, revenue from automotive coatings declined due to reduced automobile production. Revenue from industrial coatings remained stable year-on-year, as the benefits from price increases offset weaker market conditions. Decorative paints revenue also held roughly steady, with gains from the flow-through of price increases and effective sales promotions balanced by consumer spending restraint and a shift toward lower-priced products due to inflation.
As a result, consolidated revenue rose by 1.8% year-on-year, to ¥149,638 million. Consolidated operating profit also increased by 11.3% to ¥13,905 million, supported by an improved gross profit margin driven by the effective implementation of price increases.

NIPSEA

NIPSEA Group reported an increase in automotive coatings revenue, supported by higher automobile production levels in China, which offset the decline in manufacturing in Thailand. Additionally, revenue from decorative paints rose, driven by increased sales volumes in China and other major markets, including Malaysia, and Singapore.
Consequently, consolidated revenue grew by 15.1% from the previous year to ¥681,058 million, and consolidated operating profit rose by 7.6% to ¥93,757 million.

DuluxGroup

Revenue from decorative paints rose, primarily supported by yen depreciation, despite lower sales volumes caused by softened market conditions in the Pacific and Europe. Revenue in the adjacencies business also grew, bolstered by contributions from recent acquisitions in the Pacific and the European adjacencies manufacturer N.P.T.s.r.l., which was acquired in July 2023, despite the challenging market environment.
As a result, consolidated revenue grew by 12.3% year-on-year to ¥298,864 million. Consolidated operating profit rose by 4.7% to ¥29,642 million, primarily driven by an improved gross profit margin, even as SG&A expenses increased due to inflationary pressure.

Americas

In the Americas, revenue from automotive coatings increased, supported by a recovery in automobile production among Japanese automakers—our primary customers—in the United States, a core market for this segment. Additionally, the successful implementation of price increases contributed to this growth. Despite a slowdown in the U.S. economy and housing market, revenue from decorative paints rose, supported by the continued impact of the flow-through of price increases, a reduced effect from adverse weather in California compared to the same period a year earlier, and new store openings.
Consequently, consolidated revenue increased by 15.3% year-on-year, to ¥93,185 million, while consolidated operating profit grew by 26.3% to ¥6,984 million.

Revenue composition

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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