AkzoNobel delivers continued volume growth and margin expansion in both Paints and Coatings

23 April 2024

AkzoNobel has published its results for Q1 2024.

Highlights Q1 2024 (compared with Q1 2023)

• Organic sales up 2%, driven by volume growth in both Paints and Coatings; revenue down 1%

• Operating income improved to €261M (2023: €182M)

• Net cash from operating activities negative €170M (2023: negative €50M)

AkzoNobel CEO, Greg Poux-Guillaume (pictured), commented: “Our performance for the first quarter combined volume growth in both Paints and Coatings with margin expansion, as it did in the previous quarter. After growing volumes 2% in Q1, we’re preparing for further growth in areas where we see market opportunities such as in Powder, where we’re adding new production lines. Our momentum and the progress of our efficiency measures bode well for a strong 2024 performance in markets which remain mixed.”

2024 Outlook

Based on current market conditions and constant currencies, AkzoNobel targets to deliver between €1.5 and €1.65bn adjusted EBITDA in 2024, while reducing its leverage to around 2.3 times net debt/EBITDA by the end of the year.

Recent highlights

Capacity expansion completed at Vietnam multi-site

A major investment project has been completed at the production plant in Bac Ninh province near Hanoi in Vietnam. It will help to strengthen the company’s position in Asia and sharpen its focus on more sustainable manufacturing. Five new powder coating lines have been added at the multi-site, along with a line for producing water-based products for the consumer electronics market.

Renewable electricity landmark achieved in Latin America

All manufacturing locations in Latin America are now operating on 100% renewable electricity, further boosting the company’s ambition to reduce carbon emissions across the full value chain by 50% by 2030 (baseline 2018). The milestone follows on from similar achievements in North America (early 2023) and Europe (early 2022).

Growth targeted in Pakistan as new site takes root

AkzoNobel opened a new €26M manufacturing plant in Faisalabad – the company’s largest investment in Pakistan to date. The 25-acre site, which has facilities for making decorative paint, wood finishes, automotive and speciality coatings, coil coatings and protective coatings, will help to meet increasing customer demand across a variety of markets.

The report for the first quarter can be viewed and downloaded here: https://www.akzonobel.com/en/investors/results-center

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