On February 14, Nippon Paint Holdings announced its financial results for Q4 and the full year of 2024. Due to increased sales in key markets, including China, and the impact of yen depreciation, the group achieved a total consolidated revenue of 1,638.72 billion yen (approximately 10.77 billion USD or 77.664 billion RMB), reflecting a 13.6% year-on-year growth. Operating profit reached 187.647 billion yen, up 11.2%, driven by revenue growth and improved gross margins due to higher product prices. Pre-tax profit increased by 12.4% to 181.522 billion yen, while net profit grew by 8.1% to 128.674 billion yen. The parent company's net profit stood at 127.337 billion yen (approximately 836.6 million USD), marking a 7.5% year-on-year increase.
In Q4 2024, Nippon Paint reported a consolidated revenue of 416 billion yen, a 16.6% year-on-year increase, mainly due to higher sales volume, exchange rate effects, and new acquisitions. Architectural coatings, excluding DGL (Europe), saw increased sales due to volume growth and higher product prices. In the automotive sector, sales declined in Japan and the Americas due to reduced production by Japanese automakers but increased in China. Operating profit rose 23.6% year-on-year to 45.9 billion yen, benefiting from revenue growth and controlled sales and administrative expenses, despite costs related to the AOC acquisition.
Japan
Automotive coatings revenue declined due to lower car production. Industrial coatings revenue remained steady despite a sluggish market, supported by price increases. General coatings revenue was stable despite reduced consumption caused by inflation and increased demand for low-cost products, offset by price hikes and sales initiatives. The segment's consolidated revenue reached 203.112 billion yen, up 0.8% year-on-year, while operating profit grew by 1.5% to 19.446 billion yen, benefiting from improved gross margins.
NIPSEA Group
Automotive coatings revenue increased, driven by higher vehicle production in China despite lower output in Thailand. General coatings revenue also rose due to strong sales in key markets such as Malaysia and Singapore. The segment’s consolidated revenue reached 914.37 billion yen, up 18.5%, while operating profit grew 12.6% to 124.255 billion yen.
Dulux Group
General coatings revenue increased year-on-year, despite sluggish sales growth in the Pacific and European markets. The coatings-related business revenue was supported by the acquisition of the Pacific business and European coatings-related product manufacturer N.P.T. s.r.l. in July 2023. The segment's consolidated revenue reached 398.534 billion yen, up 10.6%, with operating profit rising 16.6% to 40.374 billion yen.
Americas
Automotive coatings revenue grew due to recovering production by Japanese automakers and price increases. Despite the economic slowdown and weak real estate market in the U.S., general coatings revenue increased, driven by price hikes, improved weather conditions in California, and new store openings. The segment reported consolidated revenue of 122.72 billion yen, up 12.4%, while operating profit rose 8.8% to 7.778 billion yen.
At the end of the fiscal year, total assets increased by 358.036 billion yen to 3,713.78 billion yen. Current assets grew by 165.651 billion yen, mainly due to an increase in other financial assets. Non-current assets increased by 192.384 billion yen, primarily due to goodwill growth. Liabilities rose by 115.913 billion yen to 1,461.151 billion yen, mainly due to higher financial liabilities. Equity increased by 242.123 billion yen to 1,610.227 billion yen, primarily due to exchange rate adjustments. The parent company’s equity ratio improved from 50.1% to 51.8%. Operating cash flow for the period was 167.4 billion yen, while investment cash outflows totaled 148.1 billion yen, and financing cash outflows were 37.377 billion yen. Cash and cash equivalents amounted to 288.3 billion yen, a decrease of 1.346 billion yen from the previous fiscal year-end. Operating cash inflows were 167.41 billion yen (down 22.353 billion yen year-on-year), primarily due to tax payments of 47.356 billion yen and a 23.11 billion yen increase in working capital.
Nippon Paint’s coatings division achieved sales of 1,463.607 billion yen in 2024, up from 1,283.502 billion yen in the previous year, with breakdowns as follows:
The coatings-related business recorded 175.113 billion yen in sales, up from 159.072 billion yen in the previous year.
For 2025, Nippon Paint forecasts:
Nippon Paint entered the Chinese market in 1992, with business operations spanning architectural coatings, automotive coatings, commercial wood coatings, general industrial coatings, powder coatings, coil coatings, protective coatings, energy-saving insulation, renovation services, and auxiliary materials (such as putty powder, mortar, tile adhesives, and sealants). As of now, Nippon Paint has established over 74 production bases in mainland China, employing more than 11,000 people and operating over 50,000 exclusive stores nationwide. Over its 32 years in the Chinese market, Nippon Paint has maintained its position as the top-selling paint brand in China for 27 consecutive years.
Revenue breakdown by segment for Q4 2024:
The company stated that in architectural coatings, TUC sales revenue increased by 2% year-on-year in Q4 2024, driven by sales growth in third- to sixth-tier cities. However, TUB sales revenue declined by 18% due to the continued weakness in the real estate market. In automotive coatings, overall vehicle production in China increased by 5% year-on-year, and while Japanese automakers faced weak production, strong sales to Chinese manufacturers contributed to volume growth. In industrial coatings, revenue increased due to strong performance in coil coatings and general industrial coatings.
Revenue breakdown by segment for the full year 2024:
The company highlighted that Nippon Paint China's TUC business saw a 6% revenue increase due to higher sales volumes and strong performance in third- and sixth-tier cities. However, TUB revenue declined by 15% due to the continued downturn in the real estate market.
For the TUB business, revenue is expected to grow by 0-5% year-on-year, driven by increased market share in renovation projects and diversification of income sources from infrastructure, low-cost housing, and government-related projects.
Additionally, with the expansion of automotive component coatings and key electric vehicle (EV) component coatings, as well as strengthened relationships with strategic customers, Nippon Paint expects its automotive coatings revenue in China to grow by approximately 10% in 2025.
