Consolidated net sales grew, driven by strong sales of marine coatings.
The optimization of selling prices commensurate with manufacturing costs also contributed, along with exchange rate changes.
Operating profit was up sharply, moving into the black, owing to profitability improvements resulting from selling price optimization and expanded sales of high value-added products.
Gross margin increased substantially by 6.3pp YoY, thanks to improved profitability resulting from selling price optimization, improvements in product mix, and a reduction in raw material procurement costs overseas.
SG&A ratio declined, despite higher SG&A expenses due to increased personnel expenses and forex impact. Operating profit margin recovered to 7.8%.
Of the factors affecting operating profit, selling price hikes had an impact of about 3 billion yen and a
reduction in raw material procurement costs 500 million yen (estimates).
CMP - Chugoku Marine Paints Ltd. published this content on 31 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2023 01:39:02 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.
CHUGOKU MARINE PAINTS, LTD. 
