Kansai Paint Announces Price Hike of Up to 20% Effective September 20th

Hz info,Recently, Kansai Paint Co., Ltd. issued an announcement stating that it will implement price adjustments for its paint and thinner products effective September 20, 2025. The price increase range is 5% to 20%.

Behind this decision lies the continuous cost pressures faced by Kansai Paint. According to its latest financial data, for the first quarter of fiscal year 2025 (April 1, 2025 – June 30, 2025), Kansai Paint's net sales were 144.68 billion yen (approximately $0.98 billion USD), a year-on-year decrease of 0.5%. Operating profit was 12.241 billion yen (approximately $0.08 billion USD), a year-on-year decrease of 19%. Despite efforts to improve profits through measures such as cost reductions, increased fixed costs continued to pressure performance.

The announcement mentioned that the company is currently facing a severe operating environment: raw material prices remain persistently high, global energy prices have risen significantly, and simultaneously, the labor market is experiencing a severe shortage, leading to continuously rising labor costs. These factors collectively drive up various expenses on the production side.

Further financial data shows that for the first quarter of fiscal year 2026, Kansai Paint's recurring profit was 14.378 billion yen (approximately $0.1 billion USD), a year-on-year decrease of 27.8%, primarily impacted by reduced foreign exchange gains. Net profit attributable to owners of the parent company fell to 8.481 billion yen (approximately $0.06 billion USD), a year-on-year decrease of 28.6%.

Under multiple pressures, although Kansai Paint has endeavored to absorb the pressure as much as possible by optimizing production processes and strictly cutting costs, the magnitude of the current cost increases has exceeded what the company can bear on its own. Consequently, it has become necessary to initiate price adjustments.

It is understood that the products affected by this price adjustment include various paints and thinners. Specific applicable product categories and detailed information will be separately explained by the company's sales personnel to customers.

In the announcement, Kansai Paint expressed its deep apologies to its customers, earnestly requesting their understanding of the current industry environment and the practical difficulties the company faces. The company stated that in the future, it will continue to be committed to ensuring stable product supply, advancing technological research and development, continuously improving product quality and service levels, and repaying customers with high-quality products and services, while persistently contributing to society.

Kansai Paint's price adjustment move reflects the widespread cost pressures currently facing the chemical industry. Whether it will trigger a chain reaction subsequently remains to be seen by the market.