Kansai Paint Revenue Hits 3.85 Billion Dollars with Net Profit Down 42.9 Percent Raises Alarm

On May 12, Kansai Paint reported its financial results for fiscal year 2025, revealing a record-high revenue of ¥588.8 billion (approximately $3.85 billion or RMB 27.85 billion), up 4.7% year-on-year. Despite the top-line growth, net profit attributable to shareholders plunged 42.9% to ¥383.1 billion ($2.51 billion), largely due to the absence of one-time gains from the prior year and unexpected costs including early retirement packages and business exits.

The company achieved back-to-back record sales and operating profits, driven by strong momentum in India and Africa, while Japan and Africa delivered the highest profit contributions. However, operating income increased only slightly by 0.9%, reflecting exchange rate losses and hyperinflation-related impairments in Turkey. EBITDA also fell by 1.2%, and recurring profit dropped nearly 15% due to weaker equity-method investment returns and impairment losses.

Sales in Japan dipped by 0.9%, but profit rose over 11% thanks to better pricing strategies and easing raw material costs. India’s auto sector boosted overall growth, though profit dropped as labor and fixed costs climbed. In Europe, a 15.1% revenue surge couldn’t offset inflation-related cost pressures and goodwill impairments, leading to a segment loss of ¥979 million.

In Asia, China’s auto production improved but demand remained flat, dragging down regional revenue by 4.5% and profit by 12.9%. In Africa, proactive customer development led to a 9.4% sales increase and a 6.7% rise in profit, even amid persistent power shortages and inflation. North America saw steady car production growth, but segment profit edged down due to equity method losses.

Kansai Paint disclosed that its 2024 automotive coatings revenue reached ¥1.769 trillion, a 2.31% increase, while industrial coatings surged by 13.83% to ¥1.682 trillion. Architectural coatings reached ¥1.452 trillion. The firm expects 2025 revenue to hit ¥600 billion, up 1.9%, and operating income to rise 3.7%. Yet, net profit is projected to decline 0.6% amid ongoing economic uncertainty and global trade risks.

Despite U.S. tariff hikes, Kansai Paint indicated limited exposure due to its local sourcing strategy and relatively small footprint in North America and China. Still, the company flagged higher production costs in the U.S. due to tariff-induced raw material inflation, and broader macroeconomic risks including weakening GDP across regions.

The company plans to continue investing in talent, production, and digital infrastructure, with structural reforms focused on Japan and Europe, aiming to strengthen the “One Kansai” global integration vision.