Kansai Paint (4613) Q2 2025 earnings summary

Executive summary

• Net sales rose 7.3% year-over-year to ¥294.1B for 1H FY2024, with operating income up 2.3% to ¥26.3B.

• Ordinary income declined 19% to ¥26.0B, mainly due to FX losses and hyperinflation.

• Net income dropped 66.2% to ¥15.7B, reflecting the absence of prior-year one-time gains.

• Full-year forecasts remain unchanged, with management committed to self-help efforts amid a challenging environment.

• Capital efficiency initiatives progressed, including acquisition and cancellation of ¥60B in treasury stock.

Financial highlights

• Gross profit increased to ¥93.1B from ¥83.4B year-over-year.

• EBITDA grew 5.3% to ¥41.5B; EBITDA margin slightly decreased to 14.1%.

• EPS for the period was ¥78.68, down from ¥204.25 in the prior year.

• Total assets grew to ¥752.4B as of September 30, 2024, up from ¥689.7B at March 31, 2024.

• Net assets decreased to ¥355.0B, with shareholders' equity ratio falling to 36.9%.

Outlook and guidance

• Full-year guidance maintained: net sales ¥610B, operating income ¥56B, ordinary income ¥60B, EBITDA ¥89B, net income ¥40B.

• Annual dividend forecast raised to ¥44.00 per share.

• Management aims to achieve the plan through continued efforts in the second half.