I would like to begin by summarizing the financial results for the 3Q of FY2022.
Revenue increased by 40% YoY on Tanshin basis to 357.9 bn yen, staying on a strong growth path continuing from the 2Q. Operating profit surged by 123% YoY to 38.2 billion yen. Both revenue and operating profit hit a record high for quarterly results.
This revenue growth was attributable to a positive contribution from all factors shown in the bottom of page 3, including volumes, price/mix, the paint related business, FX and two new consolidated subsidiaries. Operating profit increased significantly from a year earlier because the gross profit margin started to improve as a result of the flow through of selling price increases and mitigation of the impact of the rapid raw material price increases that started in the 3Q of FY2021. In addition, there was a provision for potential credit loss in China in the 3Q of FY2021 and subsidy income in the 3Q of FY2022. I will touch on Purchase Price Allocation (PPA) related to Cromology later on.
On Non-GAAP basis that excludes the new consolidated subsidiaries, FX, and one-off expenses, revenue increased by 19.6% and operating profit by 44.4%. Our results showed another quarter of improved performance in every operating region. Both the decorative business and industrial business achieved improvement and growth. The Chinese DIY business achieved decent local currency revenue growth of 7%. As I will explain later, however, it is too early to be pleased with this performance because of the challenging environment in the 4Q of FY2022.
Let me add that we recorded proceeds of 25.4 billion yen from the sale of cross-shareholdings of eight stocks during the first nine months of this year, although this is not a P/L item.
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Nippon Paint Holdings Co. Ltd. published this content on 17 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 November 2022 07:28:04 UTC.
Nippon Paint Holdings Co Ltd is a company mainly engaged in the manufacture and sale of coating materials and fine chemicals products. The Company is involved in the manufacture and sale of paint for automobile-, general- and industrial-uses, as well as fine chemicals. The Company operates in four business segments. The Japan segment conducts paint for automobile-, general- and industrial-uses, as well as fine chemicals business. The Asia segment conducts paint for automobile-, general- and industrial-uses, as well as fine chemicals business in China Singapore, Malaysia, Thailand, Korea, Southeast Asian countries, India. The Oceania segment conducts paint business, such as paint for general-, industrial-uses, and paints peripheral businesses. The Americas segment conducts paint for automobile business and contruction coating materials business.