Strengthening the East African Business Platform Through the Acquisition of Sadolin Group
First written in FY2017-Q3. 7 of 26 entries say "Mitigated", first in FY2021-Q3. Latest entry: FY2026.
No other company in this theme has enough history to compare yet.
- FY2026AdvancedAnnual report
「(Increase) 2 companies: Versus Paint Specialists (Pty) Ltd. (increase through acquisition); KP Prime Rwanda Ltd. (increase through new incorporation)」
The number of consolidated subsidiaries in Africa increased through the acquisition of Versus Paint Specialists and the establishment of KP Prime Rwanda. - 2026-05-11AdvancedEarnings
「In South Africa and neighboring countries, net sales exceeded the previous fiscal year's level, supported in part by the acquisition of new customers in the construction field despite continuing political instability. In East Africa, net sales remained firm in the industrial field as well as the core construction field.」
In Africa, the company continued to acquire new customers, expand in the construction field and develop the industrial field, resulting in higher sales and profit. - FY2026-H1AdvancedAnnual report
「Despite continuing chronic power shortages and political instability in South Africa and neighboring countries, sales exceeded the previous year, helped in part by the acquisition of new customers since the previous year. In East Africa, sales remained solid not only in the core construction sector but also in the industrial sector. Segment profit exceeded the previous year, driven by the expansion of the construction business in East Africa, the main contributor to the increase in sales.」
In the African business, including East Africa, the acquisition of new customers, expansion of the construction business and development of the industrial business contributed to higher sales, resulting in 4.8% sales growth and 29.8% growth in segment profit. - FY2025-H1RestatedAnnual report
「In East Africa, sales remained solid despite the effects of repeated demonstrations, unfavorable weather and other factors. Profit exceeded the previous year due to improvements in the product mix and efforts to reduce costs.」
Sales in the African business, including East Africa, remained solid despite external factors, while profit exceeded the previous year due to product-mix improvements and cost reductions. - FY2024ReframedAnnual report
「The company decided to continue operating the Africa segment and has restarted the business after formulating a business plan from a zero base, positioning it as the next growth area after India.」
The company changed its policy from the previous transfer plan and decided to continue the African business. It has reformulated its business plan and restarted operations, positioning Africa as its next growth area after India. - FY2024-Q3ReframedAnnual report
「The company had been proceeding with competition-law reviews in the relevant countries and regions, but approval for the competition-law review was not obtained in South Africa, a key region for its African business. At a meeting of the Board of Directors held on 29 November 2023, the company resolved to terminate the transfer agreement.」
The transfer agreement for the African business, including East Africa, to a company affiliated with Akzo Nobel was terminated because approval for the competition-law review was not obtained in South Africa, changing the plan that had been based on a sale. - FY2024-Q2Profit improved despite lower sales in AfricaAnnual report
「The economies of South Africa and neighboring countries have been slow to recover, and demand remained weak due to chronic power shortages, high prices and other factors. Although the company worked to improve selling prices, sales fell below the previous year. In East Africa, sales remained solid as the company focused on expanding sales in the construction sector, but total sales in Africa were slightly below the previous year. Profit, however, exceeded the previous year due to improvements in the product mix and efforts to reduce costs.」
Although sales expansion in the construction sector progressed in East Africa, total sales in Africa declined due to weak demand in South Africa. Profit, however, improved through product-mix improvements and cost reductions. - FY2023MitigatedAnnual report
「Sales also grew in East Africa, driven by efforts to expand sales in the construction sector and improve selling prices, and total sales in Africa exceeded the previous year. Profit exceeded the previous year due to fixed-cost reductions from the restructuring of unprofitable businesses, which had continued since prior years, as well as the receipt of one-off infection-related insurance proceeds.」
Africa posted 15.8% sales growth and 55.0% growth in ordinary profit, helped by expanded sales in the construction sector, price improvements, the restructuring of unprofitable businesses and fixed-cost reductions. The company also indicated that it will manage the business as a core operation until the sale is completed. - FY2023-Q3Profit declined despite higher salesAnnual report
「While economic recovery in South Africa and neighboring countries remained slow and demand was sluggish, revenue in the South African region increased owing to efforts to improve selling prices. In East Africa, revenue increased owing to efforts to improve selling prices in the construction sector, resulting in higher total African revenue than the previous year. Although fixed costs were reduced through the streamlining of unprofitable businesses, which has continued since prior fiscal years, and insurance proceeds related to infectious diseases were received, profit fell below the previous year owing to the recognition of foreign-exchange losses.」
Africa as a whole, including East Africa, reported higher revenue owing to improved selling prices and other factors, but ordinary profit fell below the previous year owing to foreign-exchange losses. - FY2023-Q2MitigatedAnnual report
「While economic recovery in South Africa and neighboring countries remained slow and demand was sluggish, revenue in the South African region increased owing to efforts to improve selling prices. In East Africa, revenue increased as the Company captured solid demand in the construction sector, resulting in higher total African revenue than the previous year. Profit exceeded the previous year owing to fixed-cost reductions from the streamlining of unprofitable businesses, which has continued since prior fiscal years, as well as the receipt of insurance proceeds related to infectious diseases.」
Although demand recovery in South Africa remained slow, revenue increased owing to improved selling prices and the capture of construction demand in East Africa, while profit also exceeded the previous year owing to the streamlining of unprofitable businesses, fixed-cost reductions and other factors. - FY2023-Q1ReframedAnnual report
「At a meeting of the Board of Directors held on 1 June 2022, the Company decided to transfer its holdings in its subsidiaries Kansai Plascon Africa Ltd. (hereinafter, “KPAL”) and Kansai Plascon East Africa (Pty) Ltd. (hereinafter, “KPEA”) to Akzo Nobel Coatings International B.V., a subsidiary of Akzo Nobel N.V., and entered into a share transfer agreement with that company.」
The policy for the theme tracked as strengthening and expanding the East African business platform, including Sadolin Group, changed to the transfer of the Company's holdings in KPAL and KPEA to an Akzo Nobel-affiliated company. Completion of the transfer was expected during 2023 and had not yet occurred. - FY2022-Q3MitigatedAnnual report
「Although the economies of South Africa and neighboring countries remained in difficult conditions owing to the renewed spread of COVID-19, revenue in the South African region increased as the Company captured demand in the construction sector. In East Africa, revenue also increased as the Company captured solid demand in the construction sector, resulting in higher total African revenue than the previous year. Profitability also improved as a result of ongoing efforts since the previous fiscal year to streamline unprofitable businesses and reduce fixed costs.」
The Africa business, including Sadolin Group, increased revenue 32.9% and reported ordinary profit of ¥1,067 million, improving from a loss in the same period of the previous year through the capture of construction demand, the streamlining of unprofitable businesses and fixed-cost reductions. - FY2022-Q2MitigatedAnnual report
「Although the economies of South Africa and neighboring countries remained in difficult conditions owing to the spread of COVID-19, revenue in the South African region increased as the Company captured demand in the construction sector. In East Africa, revenue also increased as the Company captured solid demand in the construction sector, resulting in higher total African revenue than the previous year. Profitability also improved as a result of ongoing efforts since the previous fiscal year to streamline unprofitable businesses and reduce fixed costs.」
The Africa business, including Sadolin Group, increased revenue 39.1% year on year and improved ordinary income from a loss in the same period of the previous year to a profit of ¥514 million, owing to the capture of construction demand, the streamlining of unprofitable businesses and fixed-cost reductions. - FY2022-Q1MitigatedAnnual report
「Although the economies of South Africa and neighboring countries remained in difficult conditions owing to the spread of COVID-19, revenue in the South African region increased as the Company captured demand in the construction sector. In East Africa, revenue also increased as the Company captured solid demand in the construction sector, resulting in higher total African revenue than the previous year. Profitability also improved as a result of ongoing efforts since the previous fiscal year to streamline unprofitable businesses and reduce fixed costs.」
The Africa business, including Sadolin Group, increased revenue 3.6% by capturing construction demand and streamlining unprofitable businesses and reducing fixed costs. Ordinary income improved from a loss in the same period of the previous year to a profit of ¥262 million. - FY2021MitigatedAnnual report
「In addition to lower raw material prices, the Company advanced cost reductions, the streamlining of unprofitable businesses and fixed-cost reductions, limiting the expansion of losses amid a substantial decline in revenue.」
Africa reported a 21.9% decrease in revenue, but the ordinary loss narrowed to ¥858 million owing to cost reductions, the streamlining of unprofitable businesses and fixed-cost reductions. - FY2021-Q3MitigatedAnnual report
「Amid sluggish economies in South Africa and neighboring countries, the economic stagnation caused by lockdowns related to the spread of COVID-19 further weighed on conditions, and revenue fell significantly below the previous year. Although the Company advanced profit improvement by strengthening cost-reduction efforts in addition to benefiting from lower raw material prices, the impact of lower revenue was substantial and put pressure on earnings. As a result, segment revenue was ¥19,458 million, down 27.1% year on year, and ordinary income was an ordinary loss of ¥1,302 million, including amortization of goodwill (year-on-year change: -%).」
The Africa business, including Sadolin Group, continued to report lower revenue and an ordinary loss owing to lockdowns and economic stagnation, but the ordinary loss narrowed from ¥1,952 million in the same period of the previous year to ¥1,302 million, owing to lower raw material prices and intensified cost reductions. - FY2021-Q2WorsenedAnnual report
「Amid sluggish economies in South Africa and neighboring countries, the economic stagnation caused by lockdowns related to the spread of COVID-19 further weighed on conditions, and revenue fell significantly below the previous year. Although the Company advanced profit improvement by strengthening cost-reduction efforts in addition to benefiting from lower raw material prices, the impact of lower revenue was substantial and put pressure on earnings. As a result, segment revenue was ¥11,546 million, down 32.6% year on year, and ordinary income was an ordinary loss of ¥1,992 million, including amortization of goodwill (year-on-year change: -%).」
The East African business platform, including Sadolin Group, reported a substantial decline in revenue and an ordinary loss owing to lockdowns and economic stagnation. Although improvements through lower raw material prices and cost reductions were described, pressure on earnings continued. - FY2019RestatedAnnual report
「The performance of the East African companies, which became consolidated subsidiaries in August 2017, also contributed, and revenue exceeded the previous year.」
The contribution of the consolidated performance of the East African companies has been reconfirmed for the full year. - FY2019-Q2RestatedAnnual report
「The performance of the East African companies, which became consolidated subsidiaries in August 2017, also contributed, and revenue exceeded the previous year.」
The contribution of the consolidated performance of the East African companies, including Sadolin Group, has been reconfirmed. - FY2019-Q1AdvancedAnnual report
「The performance of the East African companies, which became consolidated subsidiaries in August 2017, also contributed, and revenue exceeded the previous year.」
The contribution of the consolidated performance of the East African companies, including Sadolin Group, continued, and revenue in the Africa segment increased 39.9% year on year. - FY2018RestatedAnnual report
「The performance of the East African companies, which became consolidated subsidiaries in August 2017, also contributed, and revenue exceeded the previous year.」
While the contribution of the consolidated performance of the East African companies, including Sadolin Group, was confirmed for the full year, the Africa segment reported an ordinary loss. - FY2018-Q3RestatedAnnual report
「The performance of the East African companies, which became consolidated subsidiaries in August 2017, also contributed, and revenue exceeded the previous year.」
The contribution of the consolidated performance of the East African companies, including Sadolin Group, continues to be disclosed. - FY2018-Q2AdvancedAnnual report
「Goodwill arose because shares in the Sadolin Group companies were acquired during the second quarter of the current fiscal year and the companies were newly included in the scope of consolidation. The increase in goodwill resulting from this event was ¥9,667 million.」
The acquisition of the Sadolin Group companies progressed to their inclusion in the scope of consolidation and purchase accounting, and goodwill of ¥9,667 million was recognized. - FY2018-Q1AchievedAnnual report
「On 3 August 2017, Kansai Plascon Africa Limited, our consolidated subsidiary, acquired the shares of the companies comprising Sadolin Group, a group of companies engaged in the coatings business in East Africa, through its wholly owned subsidiary Kansai Plascon East Africa Proprietary Limited, as follows. These companies are hereinafter referred to as Sadolin Group.」
The acquisition of the Sadolin Group companies was completed on 3 August 2017, strengthening the East African business platform. Following the acquisition, the voting rights ratios were 100% for Shalvik Investments, 92.5% for Uganda, 90.0% for Tanzania and 85.0% for Kenya. - FY2017RestatedAnnual report
「We plan to acquire additional shares within 2 years of completing this acquisition, bringing the ownership interest in each Sadolin Group company to 100%. Scheduled share transfer completion date: July 2017.」
The acquisition agreement for Sadolin Group, the execution scheduled for July 2017 and the plan to raise ownership to 100% within 2 years after completion have been reconfirmed. - FY2017-Q3First statedAnnual report
「Africa, in particular, is considered the market with the greatest medium- to long-term potential for growth in paint demand, owing not only to population growth but also to increases in per-capita paint consumption accompanying economic growth. East Africa, among these markets, is regarded as an important region with high growth potential and significant prospects for expansion in scale. We believe that this acquisition will further strengthen our Group's business platform in the East African market and make a significant contribution to further business expansion and development across Africa. We plan to acquire additional shares within 2 years of completing this acquisition, bringing the ownership interest in each Sadolin Group company to 100%. Scheduled share transfer completion date: end of April 2017.」
An acquisition agreement for the Sadolin Group companies, which hold the leading market share in the East African Community, was signed in February 2017. The acquisition interests were 85%, 90%, 92.5% and 100%, respectively, by company, and are scheduled to reach 100% for all companies within 2 years.