26.07.2023 • NewsFinancial ReportsAkzoNobel

AkzoNobel's Q2 Results Show Resilient Volumes and Increased Profits

Compared with Q2 last year AkzoNobel, a coatings and sustainable paints company, saw revenue 4% down on unfavorable exchange rates, 3% up in constant currencies, and considerable increases in both its operating income and net cash from operating activities.

Pricing was up 5% compared to Q2 2022 and operating income increased by 36% from €205 million to €279 million. Adjusted operating income was observed to be up 25% from €249 to €311 with an increase in ROS (return on sales) from 8.7% to 11.3%. Net cash from operating activities was also up from -€52 million to +€305 million.  

"In Q2, we achieved year-on-year profit growth driven by resilient volumes, robust pricing and the first effects of raw material deflation," commented AkzoNobel CEO, Greg Poux-Guillaume. "This helped us offset headwinds from continuing softness in some markets and from adverse currency impact and persistent inflation. Our results provide a solid foundation and allow us to increase our full-year guidance. We’re on the right path – in markets that will continue to be impacted by macro-economic uncertainties.” 

Our Q2 results are in line with expectations despite volatile markets and...
"Our Q2 results are in line with expectations despite volatile markets and complete a solid first half of 2023," says AkzoNobel CEO Greg Poux-Guillaume. © AkzoNobel

With ongoing macro-economic uncertainties on the horizon, AkzoNobel plans to focus on margin management, cost reduction, working capital normalization and deleveraging. It also expects declining raw materials costs to have a positive impact on profitability. Current estimates for 2023 target €1.4-1.55 billion adjusted EBITDA. The company also states that it aims to lower its leverage ratio to less than 3.4x net debt/EBITDA by the end of 2023, including the impact of the Kansai Paint Africa acquisition. Post-2023 it aims to have a 2x net debt/EBITDA.

Akzonobels main office headquarters in Amsterdam. The coatings and sustainable...
Akzonobel's main office headquarters in Amsterdam. The coatings and sustainable paint company met expectations on their Q2 results when compared to last year. © AkzoNobel

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AkzoNobel

Christian Neefestraat 2
1077 WW Amsterdam
Netherlands

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