Kansai Paint (4613) Q2 2027 earnings summary

Executive summary

• H1 FY27 net sales rose 11.7% YoY to ¥323,122 million; operating profit fell 11.9% to ¥21,422 million and parent profit fell 49.1% to ¥8,238 million.

• Profitability was pressured by delayed raw-material cost pass-through and higher fixed costs; ordinary profit also reflected FX losses, while restructuring expenses and lower securities-sale gains weighed on parent profit.

• FY27 sales forecast rose to ¥640bn following PKB consolidation; Japan recovery and India cost relief are 2H priorities.

Financial highlights

• Net sales were ¥323,122 million, up 11.7% reported and 7.4% excluding FX effects; cost of sales was ¥220,538 million and SG&A ¥81,161 million.

• Operating profit was ¥21,422 million, down 11.9%; segment profit was ¥25.8bn, down 4.1%, and ordinary profit was ¥23,086 million, down 19.3%.

• EBITDA rose 4.3% to ¥41.7bn, while EBITDA margin fell to 12.9% from 13.8%; segment profit margin was 8.0% versus 9.3%.

• Parent profit was ¥8,238 million, down 49.1%; restructuring expenses were ¥868 million, business-withdrawal loss ¥655 million, and securities-sale gains ¥440 million versus ¥876 million.

• Net cash used in operating activities was ¥3,217 million, versus ¥15,342 million provided in the prior-year period; capital expenditure was ¥10.5bn.

Outlook and guidance

• FY27 forecast: sales ¥640bn, operating profit ¥55bn, segment profit ¥60bn, ordinary profit ¥57bn, EBITDA ¥94bn and parent profit ¥39bn; sales guidance was raised ¥10bn.

• The forecast was revised November 6, 2026, in connection with the gain on step acquisition; FY27 basic EPS forecast is ¥222.06.

• PKB consolidation adds ¥5bn to sales and ¥11bn to profit; the sales forecast increase reflects Japan and PKB contributions.

• Japan targets 2H improvement through margin gains and volume growth after 1H inventory-related costs; India is targeting cost relief after higher raw-material costs.