Nippon Paint Hldgs Co Ltd (NPCPF) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you. And hello, everyone. I am Wakatsuki, co-president of Nippon Paint Holdings. Thank you so much for your attendance today. Despite your busy schedules, I will now explain the highlights of our financial results for the second quarter of FY 2025. We're also joined by the media today. First, page three. This is a summary of the second quarter of 2025. As you can see, on Tanshin basis, revenue was 446.7 billion yen. After adjusting for the change in the trading business model in China, it grew by 5.7%. Operating profit was 69.7 billion yen, growing by 36.2%. and they are new record highs. For new consolidation, India and AOC contributed three months' worth of results, and margins also improved by 3.8 points, partly due to AOC's contribution. While the exchange rate impact on revenue was a significant negative of 9% year-on-year, as you can see on the bottom right, which is 38.8 billion yen impact in revenue and 5.2 billion yen impact on OP. The 14% contribution from India and AOC more than offset this. In OP it had 18.1 billion yen impact and revenue 60.43 billion yen impact where contribution were made. and these highlighted the positive aspects of our asset assembler model. Overall, as indicated in the summary on this page at the top, market conditions globally were not favorable, especially considering the period was from April to June. The environment was highly volatile, centered on the negative sentiment caused by the Trump tariffs. Our group strictly controlled prices, costs, and sales management expenses across all regions, referring from aggressive sales expansion, which led to moderate revenue, improved margins compared to our initial forecast, and satisfactory numbers in terms of profit, which is our top priority. On a non-GAAP basis, that is excludi...