Consolidated net sales grew, driven by strong sales of marine coatings.
An overall increase in selling prices could not offset impact from higher procurement costs caused by soaring raw material prices, and the Company reported an operating loss as a result.
Sales of both marine and industrial coatings increased thanks in part to selling price revisions implemented in response to surging raw material prices. Q1 consolidated net sales exceeded 20 billion yen for the first time in three fiscal years.
The gross margin declined 6.4pp due to higher raw material procurement costs.
Despite efforts aimed at curbing various expenses, total SG&A expenses rose due to an increase in transportation costs and forex impact.
Operating loss is commensurate with the Company's initial projections and is expected to have reached its nadir in Q1.
CMP - Chugoku Marine Paints Ltd. published this content on 29 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2022 06:23:12 UTC.
CHUGOKU MARINE PAINTS, LTD. is a Japan-based company engaged in the manufacture and sale of paint, as well as the provision of contract painting services. The Company has five geographical segments, including Japan segment, China segment, Korea segment, Southeast Asia segment and Europe and America segment. Japan segment is engaged in the manufacture and sale of paint, as well as the management of real estate business. The other four reporting segments are engaged in the manufacture and sale of paint.
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