Nippon Paints Q1 Report 2024
On a Tanshin basis, we achieved significant growth in both revenue and operating profit. Revenue increased by 16.4% year-on-year, reaching 384.3 billion yen, while operating profit surged by 22.2% year-on-year to 42.7 billion yen. Please refer to the year-on-year revenue growth breakdown at the bottom of page 3. This positive trend was driven by increased sales volumes, favorable price/mix in the paint and coatings business, contributions from our adjacencies business, FX impact, and new consolidations.
On a Non-GAAP basis, our revenue increased by 10.6%, and operating profit grew by 15.9%. In the decorative paints sector of NIPSEA China, revenue from the TUC segment rose by 15%, while it declined by 15% in the TUB segment. Despite this, NIPSEA China overall demonstrated strong growth, achieving a 12.2% increase in revenue and an 11.6% rise in operating profit, driven in part by a robust performance in the automotive segment.
These results have surpassed our original guidance, which anticipated 7-7.5% growth in revenue and 7.5-8% growth in operating profit, excluding the impacts of acquisitions in Kazakhstan and India and FX impacts. They also exceeded the medium-term Compound Annual Growth Rate (CAGR) targets from our Medium-Term Strategy, which included the impacts of acquisitions in Kazakhstan and India, projecting an 8-9% growth in revenue and a 10-12% growth in EPS. Although foreign exchange rates have moved favorably since we announced our original guidance three months ago, we are not revising our guidance at this time. This decision is partly due to the relatively short period that has elapsed. Additionally, despite a delay in the expected closing of the buyback of the India businesses, which I will discuss later, our performance remains largely in line with, or slightly above, our original projections.