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.” 

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.