Kansai Paint (4613) Q3 2025 earnings summary

Executive summary

• Net sales rose 5.3% YoY to JPY 444.8 billion for 9M FY2024, with record sales in 3Q despite a challenging environment.

• Operating income declined 5.2% YoY to JPY 39.2 billion due to higher fixed costs.

• Net income attributable to owners of the parent dropped 39.0% YoY to JPY 32.9 billion, reflecting the absence of prior-year one-time gains.

• Strong performance in Japan's Marine sector and India's Auto/Industrial sectors, with profit improvement measures supporting results.

• Europe saw sales growth from consolidation, but profit declined due to hyperinflation in Turkey and affiliate losses.

Financial highlights

• Gross profit increased to JPY 140.3 billion, but SG&A expenses rose to JPY 101.1 billion.

• EBITDA decreased 3.0% YoY to JPY 61.6 billion; EBITDA margin dropped 1.1pt to 13.9%.

• Net income per share was 170.13 yen, down from 237.58 yen YoY.

• Total assets increased to JPY 751.3 billion as of December 31, 2024.

• Shareholders' equity ratio declined to 34.7% from 44.9% at the previous fiscal year-end.

Outlook and guidance

• FY2024 forecast: net sales JPY 580 billion (+3.2% YoY), operating income JPY 52 billion (+0.8% YoY), net income JPY 40 billion (down 40.4% YoY).

• Net income per share expected at 210.70 yen.

• Record sales and operating income expected despite external challenges in Europe.