Nippon Paint Holdings Reports Strong Q3 Performance

Nippon Paint Holdings saw a significant surge in its shares following the release of its third-quarter financial results, which showed a rise in net profit and an upward revision of its earnings guidance for 2023. The company attributed this success in part to the implementation of product-price increases.

As of Wednesday morning, Nippon Paint’s shares had climbed 8.7% to reach 1,130.5 yen. Earlier in the day, they had even risen by as much as 10%.

During the three months that ended on September 30, Nippon Paint’s net profit increased by 17% compared to the previous year, reaching 32.55 billion yen ($216.5 million). Furthermore, its third-quarter revenue experienced a growth of 9.8%, amounting to Y392.95 billion.

The Japanese paint manufacturer attributed its positive financial performance to a combination of increased sales volume and higher product prices. Notably, operating profit saw growth in Japan, Southeast Asia, and Europe.

With the implementation of product-price increases, effective cost control measures in China, and the influence of a weaker yen, Nippon Paint has revised its profit forecasts for 2023. The company now expects a net profit increase of 45% to Y115.00 billion for that year, surpassing its previous forecast of Y110.00 billion.