Chugoku Marine Paints (4617) Q1 2025 earnings summary

Executive summary

• Net sales rose 9.8% year-over-year in Q1 FY2024 to ¥29,080 million, driven by price optimization, a weak yen, and strong marine coatings shipments, especially in South Korea.

• Operating profit surged 62.4% year-over-year to ¥3,367 million, supported by higher selling prices and increased sales of high-value-added products.

• Profit attributable to owners of parent increased 186.2% year-over-year.

• Extraordinary gain of ¥2,443 million recorded from the sale of the Shanghai No. 2 Factory.

Financial highlights

• Net sales: ¥29,080 million (+9.8% YoY); Operating profit: ¥3,367 million (+62.4% YoY); Net income: ¥4,949 million (+186.2% YoY).

• Gross margin improved to 32.6% from 27.3% year-over-year; gross profit rose to ¥9,485 million.

• EPS increased to ¥99.85 from ¥34.90 year-over-year.

• Cash and cash equivalents at end of Q1: ¥28,218 million, up ¥8,758 million from previous year.

• Comprehensive income rose to ¥8,168 million from ¥2,967 million year-over-year.

Outlook and guidance

• Full-year FY2024 net sales forecast maintained at ¥120,000 million (+3.3% YoY); operating profit forecast at ¥12,000 million.

• Profit attributable to owners of parent projected at ¥10,000 million (+1.1% YoY); EPS forecast at ¥201.74.

• Annual dividend forecast raised to ¥81.00 per share; minimum annual dividend of ¥35 per share.

• Marine and industrial coatings expected to grow, while container coatings forecast to decline.

• Sales in Korea and Southeast Asia projected to rise, while Japan and Europe/US expected to decline.