Nippon Paint Hldgs Co Ltd (NPCPF) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you very much for waiting. We will now begin Nippon Paint Holdings FY2026 Q1 financial results conference call. Before we begin, a little housekeeping announcement. To present the audio feedback, please turn off any mobile phones or other communication devices nearby or move them away from the phone. Please note that this phone conference will be conducted with simultaneous interpretation in English and Japanese. Now, Mr. Wakatsuki, Mr. Tanaka, please begin. Thank you very much. Hello, everyone. I am Wakatsuki, co-president of NPHD. Thank you very much for taking the time to join us today despite your busy schedules. I will provide an overview of our FY2026 Q1 financial results. First, as always, historical performance is shown on page 3. This Q1 was also strong with revenue CAGR of 16% and operating profit CAGR of 17.6%, even in the long term. The profit contributions from organic and inorganic growth are 10% each, showing that both wheels of our asset assembler business are working well. Next, on page 4. On consolidated basis, revenue reached 490.3 billion yen. Adjusted operating profit was 76.4 billion yen. Adjusted OP margin was 15.6%. And adjusted EPS was 24.2 yen. all of which were record highs for Q1. Revenue growth was over 20%, and adjusted operating profit rose sharply at approximately 38%. Organic and inorganic profit contribution was 21.6% and 16.3% respectively. Adjusted OB margin was 15.6%, also up by 1.9 percentage points year-on-year. This market has been highly uncertain, particularly since March, due to the escalating tensions surrounding Iran. But amidst this rapidly changing environment, all partner companies responded extremely quickly and autonomously, prioritizing their responsibility to supply to customers. I believe we were able to demo...