Akzo Nobel has reported improved volumes in most businesses for the first quarter of 2010, underpinning revenue growth of 6%. Continued margin management and cost reduction programs also contributed to Ebitda growth of 38%. The one-year rolling Ebitda margin reached 13.6%. The company also improved its net income to €81 million and classified National Starch as a discontinued operation.
Commenting on the results, CEO Hans Wijers said,: "We've had a good start to 2010, particularly in higher growth markets, where our performance was strong. While revenue growth across all Akzo Nobel's businesses has been solid, our Q1 performance compares with a particularly weak first quarter in 2009."
Akzo Nobel said it remains on track to achieve its medium-term target of an Ebitda margin of 14% by the end of 2011. The focus on customers, cost reduction and cash generation continues, while investments to capture growth remain a priority, particularly in higher growth markets. Although volumes remain below pre-recessionary levels in most businesses, the company said increases in volume, first evident in Q2 2009, have continued more broadly and are a reason for cautious optimism.
"We expect pressure from further raw material cost increases during the year and remain cautious about the strength of the recovery," Wijers said. "Akzo Nobel ... will also prioritize investments and initiatives to ensure that the company is able to capture growth."
