Nippon Paint (4612) Q4 2024 earnings summary

Executive summary

• Achieved record-high revenue and operating profit in FY2024, with revenue up 13.6% and operating profit up 11.2% year-over-year, both exceeding guidance, driven by volume increases, FX impact, and new consolidations.

• Profit attributable to owners of parent grew 7.5% to ¥127,337 million; basic EPS was ¥54.22.

• FY2025 guidance projects further record highs in revenue and operating profit, excluding AOC acquisition effects.

• Hyperinflationary accounting in Turkey negatively impacted operating profit by JPY 3.2 billion, but double-digit profit growth was still achieved.

Financial highlights

• FY2024 revenue: ¥1,638.7bn (+13.6% YoY); operating profit: ¥187.6bn (+11.2% YoY); OP margin: 11.5%.

• Net income: ¥127.3bn (+7.5% YoY); EPS: ¥54.22 (+7.5% YoY); EBITDA: ¥250.5bn (+12.8% YoY).

• 4Q revenue: ¥416.0bn (+16.6% YoY); 4Q operating profit: ¥45.9bn (+23.6% YoY); OP margin: 11.0% (+0.6pp YoY).

• Adjusted (Non-GAAP) FY2024 revenue: ¥1,522.0bn (+5.6% YoY); operating profit: ¥168.1bn (+4.8% YoY).

• Annual dividend per share: ¥15 (up from ¥14); payout ratio: 27.7%.

Outlook and guidance

• FY2025 revenue forecast: ¥1,740.0bn (+6.2% YoY); operating profit: ¥198.0bn (+5.5% YoY); profit attributable to owners of parent: ¥134,000 million (+5.2% YoY); EPS: ¥57.05.

• Planned dividend for FY2025: ¥16 per share; progressive dividend policy adopted.

• Guidance excludes AOC acquisition; post-closing revision expected. AOC to contribute +¥15–17 to 2025 EPS on annualized basis.