Kansai Paint (4613) Q1 2025 earnings summary

Executive summary

• Net sales rose 6.6% year-over-year to ¥145.4B in Q1, with operating income up 24.9% to ¥15.1B, outperforming initial plans due to price pass-through and favorable FX effects.

• Net income attributable to owners fell 68.4% year-over-year to ¥11.9B due to one-time gains in the prior year.

• Profitability improved from lower raw material costs and productivity gains.

• Comprehensive income increased 8.6% year-over-year to ¥28.2B.

• The global economic environment remained uncertain, with mixed regional trends and ongoing geopolitical and currency risks.

Financial highlights

• EBITDA increased 22.1% to ¥23.1B; EBITDA margin improved by 2.1pt to 15.9%.

• Gross profit increased to ¥46.8B from ¥40.4B year-over-year.

• Net assets rose to ¥388.2B as of June 30, 2024, from ¥380.2B at March 31, 2024.

• Total assets increased to ¥782.7B from ¥689.7B at the previous fiscal year-end.

• Net income per share was ¥57.45, down from ¥164.67 year-over-year.

Outlook and guidance

• Full-year FY2024/2025 guidance: net sales ¥610B, operating income ¥56B, EBITDA ¥89B, net income ¥40B, EPS ¥196.60.

• Steady improvement in profitability expected; forecasts subject to risks and uncertainties.