Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2025 (FY2024)
Feburary 4, 2025
Chugoku Marine Paints, Ltd.
(TSE Code: 4617)
Company mascot, "Pentaro"
Outline
Page | |
１. Consolidated Earnings Summary | 3-10 |
２. Summary by Product and Region | 11-19 |
３. Full-year Outlook and Topics | 20-24 |
４. Reference | 25-38 |
Note: Figures presented in tables and graphs are expressed in millions of yen unless otherwise indicated.
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1-1
1. Consolidated Earnings Summary
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Q1-Q3 earnings highlights
- Net sales increased as we made progress in optimizing selling prices to better reflect manufacturing costs, primarily for marine coatings, and benefited from the weak yen.
- Operating profit grew sharply, backed by improved profitability attributed to selling price revisions and increased sales of high-value-added products.
Net sales | Up 11.5% YoY | Operating profit | Up 28.6％ YoY | ||||||||||
,000 | 40% | ||||||||||||
12,000 | |||||||||||||
,000 | 96,055 | ||||||||||||
86,140 | 10,000 | ||||||||||||
Gross | |||||||||||||
,000 | |||||||||||||
margin | 8,000 | ||||||||||||
,000 | 32.5% | ||||||||||||
6,000 | 11,643 | ||||||||||||
30.0% | |||||||||||||
9,051 | |||||||||||||
,000 | |||||||||||||
4,000 | |||||||||||||
,000 | 2,000 | ||||||||||||
0 | 20% | 0 | |||||||||||
Q1-Q3 FY2023 | Q1-Q3 FY2024 | Q1-Q3 FY2023 | Q1-Q3 FY2024 | ||||||||||
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Consolidated income statement
Gross margin increased 2.5pt YoY, driven by enhanced profitability from ongoing selling price revisions and improvements in product mix, as well as lower raw material procurement costs overseas.
Operating profit margin rose to 12.1%, as the increase in gross profit covered higher SG&A expenses (personnel, transportation, and currency translation expenses).
Of the factors affecting operating profit, selling price increases provided a ¥1,260 million boost while higher raw material procurement costs depressed profit by ¥540 million (both figures are estimates).
Recorded an extraordinary gain of ¥2,492 million on sale of non-current assets, mainly for the sale of Shanghai No. 2 Factory.
Q1-Q3 FY2023 | Q1-Q3 FY2024 | Change | % change | |||||
Net sales | 86,140 | 100.0% | 96,055 | 100.0% | ＋9,914 | ＋11.5% | ||
Gross profit | 25,857 | 30.0% | 31,241 | 32.5% | ＋5,384 | ＋20.8% | ||
SG&A expenses | 16,805 | 19.5% | 19,598 | 20.4% | ＋2,792 | ＋16.6% | ||
Operating profit | 9,051 | 10.5% | 11,643 | 12.1% | ＋2,591 | ＋28.6% | ||
Ordinary profit | 10,059 | 11.7% | 12,015 | 12.5% | ＋1,955 | ＋19.4％ | ||
Profit before income | 10,277 | 11.9% | 14,488 | 15.1% | ＋4,210 | ＋41.0％ | ||
taxes | ||||||||
Profit attributable to | 7,675 | 8.9% | 10,691 | 11.1% | ＋3,015 | ＋39.3% | ||
owners of parent | ||||||||
5 | ||||||||
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Income statement supplemental information
Q1-Q3 FY2023 | Q1-Q3 FY2024 | Change | % change | |
Depreciation | 1,212 | 1,249 | ＋36 | ＋3.0% |
R&D expenses | 1,203 | 1,285 | ＋82 | ＋6.9% |
Domestic naphtha
price (JPY/kl)
67,967
76,367
＋8,400
＋12.4%
◆Exchange rate(JPY)
USD | 138.11 | 151.29 | ＋13.18 | ＋9.5% |
EUR | 149.62 | 164.40 | ＋17.78 | ＋9.9% |
CNY | 19.61 | 20.97 | ＋1.36 | ＋6.9% |
KRW | 0.1063 | 0.1120 | ＋0.0057 | ＋5.4% |
Note: Exchange rates had a positive impact of about ¥4.6 billion on sales in Q1-Q3 FY2024.
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Key raw material prices (domestic market)
Naphtha | Epoxy resin | Copper | ||||||||||||
（JPY/kl） | Domestic naphtha | Yen-denominated price of | Domestic copper price | （JPY/kl） | ||||||||||
price (right axis) | epoxy resin (left axis)* | (left axis) | ||||||||||||
1,600 | 120,000 | |||||||||||||
Up approx. | ||||||||||||||
1,448 | 1,468 | |||||||||||||
19% YoY | 1,570 | |||||||||||||
1,400 | ||||||||||||||
in April-December | 1,301 | 1,424 | ||||||||||||
1,286 | ||||||||||||||
1,211 | 1,238 | 1,219 | 1,264 | 1,264 | 100,000 | |||||||||
1,189 | ||||||||||||||
1,200 | 86,100 | 1,125 | （ Jan-Mar Forecast ） | |||||||||||
79,000 | 76,900 | 77,000 | ||||||||||||
73,200 | 80,000 | |||||||||||||
1,000 | 81,400 | 72,500 | 72,800 | 72,500 | ||||||||||
64,600 | 66,500 | 67,500 | 63,600 | Up approx. | ||||||||||
12% YoY | ||||||||||||||
800 | ||||||||||||||
in April-December | 60,000 | |||||||||||||
600 | 502 | 538 | Up approx. | |||||||||||
4% YoY. | ||||||||||||||
457 | ||||||||||||||
411 | in April-December | |||||||||||||
354 | 40,000 | |||||||||||||
400 | 314 | 297 | 314 | 306 | 324 | 314 | 319 | 328 | ||||||
200 | 20,000 | |||||||||||||
Jan-Mar | Apr-Jun Jul-Sep | Oct-Dec | Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar | Apr-Jun | Jul-Sep Oct-Dec Jan-Mar | |||||||||
2022 | 2023 | 2024 | 2025 |
*Simple yen conversion of Asian market prices shown on P. 8, using exchange rates for the corresponding periods
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Key raw material prices (overseas market )
Naphtha | Epoxy resin | Copper | ||
（US$/t）
Naphtha price (right axis)
Epoxy resin (left axis)* Copper price (left axis) (US＄/t）
Up approx.
10,000
8,000
6,000
4,000
9,985
9,526
877 875
7,742
714
4,281 4,123
3,285
8,930
8,006
673 689
2,876 2,654
6% YoY | 9,751 | 1,000 | |||||
9,204 | 9,145 | ||||||
in January-September | 8,986 | ||||||
8,478 | 8,356 | 8,169 | 8,444 | ||||
800 | |||||||
648 | 660 | 686 | 688 | 672 | 652 | 673 | |
602 |
Up approx. | 600 |
6%YoY | |
in January-September | |
400 |
2,000
0
Jan-Mar Apr-Jun Jul-Sep
2022
Oct-Dec Jan-Mar
2,268 | 2,041 | 2,106 | 2,045 |
Apr-Jun Jul-Sep Oct-Dec Jan-Mar
2023
2,064 2,086 2,077 2,077
Down approx. |
11%YoY |
in January-September
Apr-Jun | Jul-Sep | Oct-Dec | ||||||||||
Jan-Mar | ||||||||||||
2025 | ||||||||||||
2024 | ||||||||||||
200
0
*Asian market prices provided by third-party institutions
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1Consolidated-6 | balance sheet summary | ||||||||
End-FY2023 | Q3 End | Change | Main changes | ||||||
FY2024 | |||||||||
＋6,609 | Cash and deposits +1,069 | ||||||||
Current assets | 97,379 | 103,988 | Merchandise and finished goods +2,063 | ||||||
Raw materials and supplies +2,193 | |||||||||
Property, plant and | 25,000 | 24,863 | －136 | ||||||
equipment | |||||||||
Intangible assets | 331 | 382 | ＋51 | ||||||
Investments and | 9,693 | 10,811 | ＋1,118 | Retirement benefit asset +442 | |||||
other assets | Investment securities +410 | ||||||||
Total assets | 132,404 | 140,046 | ＋7,642 | ||||||
＋897 | Trade payables +1,321 | ||||||||
Current liabilities | 47,520 | 48,418 | Provision for bonuses +591 | ||||||
Other current liabilities -1,403 | |||||||||
Non-current | －564 | Long-term borrowings -1,700 | |||||||
8,708 | 8,144 | Retirement benefit liability +566 | |||||||
liabilities | |||||||||
Deferred tax liabilities +550 | |||||||||
Total liabilities | 56,229 | 56,562 | ＋333 | ||||||
＋7,308 | Retained earnings +6,264 | ||||||||
Total assets | 76,175 | 83,484 | Foreign currency translation adjustment | ||||||
+1,249 | |||||||||
Cash and deposits | 32,890 | 33,959 | ＋1,069 | ||||||
Equity ratio | 53.3% | 55.9％ | ＋2.6pt | ||||||
9 | |||||||||
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1Consolidated-7 cash flows statement summary
Q1-Q3 | Q1-Q3 | Change | Main changes | |||
FY2023 | FY2024 | |||||
Profit before income taxes +4,210 | ||||||
Cash flows from operating | 7,698 | 8,671 | ＋972 | Change in trade receivables +4,165 | ||
Change in inventories -5,533 | ||||||
activities | ||||||
Gain on sale of non-current assets - | ||||||
2,445 | ||||||
Proceeds from sale of non-current | ||||||
Cash flows from investing | △1,195 | 649 | ＋1,845 | assets +1,302 | ||
Change in time deposits +1,209 | ||||||
activities | ||||||
Proceeds from sale of investment | ||||||
securities -242 | ||||||
Cash flows from financing | Change in borrowings -6,997 | |||||
2,072 | △8,415 | －10,488 | Dividends paid -1,681 | |||
activities | Purchase of shares of subsidiaries - | |||||
1,296 | ||||||
Effect of exchange rate change | 1,705 | 615 | －1,089 | |||
on cash and cash equivalents | ||||||
Net increase (decrease) in cash | 10,280 | 1,520 | －8,759 | |||
and cash equivalents | ||||||
Cash and cash equivalents | 18,214 | 27,705 | ＋9,491 | |||
at beginning of period | ||||||
Cash and cash equivalents | 28,494 | 29,226 | ＋731 | |||
at end of period | ||||||
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