Chugoku Marine Paints (4617) Q1 2026 earnings summary

Executive summary

• Net sales rose 12.1% year-over-year to ¥32,589 million, driven by strong marine coatings sales and price optimization.

• Operating profit increased 16.5% year-over-year to ¥3,922 million, reflecting higher sales of high-value-added products and selling price revisions.

• Profit attributable to owners of parent declined 48.9% year-over-year to ¥2,531 million due to the absence of a one-time gain from asset sales in the prior year.

• Comprehensive income dropped sharply to ¥224 million from ¥8,168 million a year earlier, impacted by negative foreign currency translation adjustments.

Financial highlights

• Net sales: ¥32,589 million (+12.1% YoY); operating profit: ¥3,922 million (+16.5% YoY); gross margin: 33.5% (+0.9pp YoY).

• Gross profit improved to ¥10,910 million from ¥9,485 million year-over-year.

• Basic EPS fell to ¥51.06 from ¥99.85 year-over-year.

• Cash and cash equivalents at period end were ¥26,492 million, down from ¥32,174 million at the start of the quarter.

• SG&A expenses increased 14.2% year-over-year, mainly from higher personnel and transportation costs.

Outlook and guidance

• Full-year FY2025 guidance maintained: net sales ¥133,000 million (+1.4%), operating profit ¥16,000 million (+4.0%), profit attributable to owners of parent ¥11,000 million (-19.8%).

• Full-year basic EPS forecasted at ¥221.87.

• Marine coatings sales expected to be stable; industrial coatings to grow 12.1%; container coatings to decline 15.3%.

• Exchange rate assumptions: 5% yen appreciation for USD, CNY, KRW compared to 2024.