I would like to begin by summarizing the financial results for the third quarter of fiscal 2023.
On a Tanshin basis, we continued to register a noteworthy growth in both revenue and operating profit. Revenue increased 9.8% year-on-year to 393 billion yen, and operating profit recorded a year-on-year surge of 20.5% to 47.9 billion yen. Kindly refer to the year-on-year revenue growth breakdown shown at the bottom of page 3. Positive contributors include sales volumes and price/mix in the paint and coatings business, adjacencies business, and new consolidations. Nevertheless, there was a slight adverse foreign exchange impact on revenue, primarily attributed to the depreciation of the Turkish lira.
Regarding profitability, the gross profit margin increased by 2.7 percentage points (pp) compared to the same period last year. This improvement can be attributed to revenue growth, ongoing moderation in raw material prices, and effective implementation of pricing adjustments. The operating profit margin reached 12.2%, marking a 1.1 pp improvement from the previous year, which included one-off gains. Despite a challenging macroeconomic landscape, these robust results highlight our strong market shares and brand strengths, among other factors.
On a Non-GAAP basis, there was a 10.2% rise in revenue and a 34.1% increase in operating profit. In the Chinese decorative paints business, TUC revenue increased by 10%, whereas TUB revenue declined by 17%. The operating profit margin for the entire Chinese business reached 13.2%, reflecting a gain of 1.1 percentage points from the corresponding period last year. The Chinese business exhibited strengths in navigating the challenging demand environment, aided by the efficient control of SG&A expenses.
Nippon Paint Holdings Co. Ltd. published this content on 16 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 November 2023 08:36:08 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.
NIPPON PAINT HOLDINGS CO., LTD. 
