Nippon Paint H1 Profit Soars 34 Percent to ¥87.45 Billion China Sales Down 12.6 Percent Despite Automotive Surge

Nippon Paint released its FY2025 H1 report, posting a 4.3% year-on-year revenue increase to ¥852.43 billion (RMB 41.67 billion), with net profit attributable to owners soaring 34.4% to ¥87.45 billion (RMB 4.26 billion). Operating profit jumped 31.1% to ¥121.18 billion (RMB 5.9 billion). The growth was helped by the March acquisition of specialty coating business AOC, which contributed significantly to group results.

Q2 saw revenue up 3.2% to ¥446.7 billion (RMB 21.8 billion), with operating profit rising 36.2%. Except for Japan, China, and the Americas, most regions posted higher decorative paint sales driven by volume growth.

Nippon Paint China’s Q2 revenue plunged 21.7% to ¥117.7 billion (RMB 5.75 billion), mainly due to a 24.5% drop in decorative paint sales amid persistent real estate weakness and tightened credit. However, automotive coatings revenue rose 3.8%, reflecting robust demand from local OEMs. Despite lower total sales, operating profit grew 3.1% to ¥18.5 billion (RMB 900 million) on improved raw material margins and cost controls.

In Japan, Q2 revenue increased 2.8% to ¥52.3 billion (RMB 2.5 billion), but decorative paints were hit by fewer renovation projects and retail slowdowns. The Americas posted a 10% revenue decline to ¥31.1 billion (RMB 1.5 billion), while Q2 operating profit still surged 22.4% as cost structures improved.

For H1, the company’s Chinese operations generated ¥245.3 billion (RMB 11.96 billion) in revenue, down 12.6% year-on-year. Automotive coatings grew 2.7%, but decorative and industrial coatings continued to slide. Operating profit in China climbed 7.7% to ¥37.8 billion (RMB 1.84 billion), thanks to raw material and cost optimizations.

Group-wide, the acquisition of AOC and effective cost management offset regional softness, but persistent weakness in real estate and industrial demand, especially in China and Europe, remains a challenge. Nippon Paint expects continued margin support from sourcing and efficiency, but is bracing for ongoing market headwinds in the coming quarters.