(AGENPARL) – mer 25 ottobre 2023 Akzo Nobel N.V.
Media release
October 25, 2023
AkzoNobel rebound continues in the third quarter with solid profit growth and
robust cash generation
Akzo Nobel N.V. (AKZA; AKZOY) publishes results for Q3 2023
Highlights Q3 2023 (compared with Q3 2022)
• Revenue in constant currencies up 5% on pricing, despite flat volumes; reported revenue 4% down
on unfavorable exchange rates
• Operating income improved to €354 million (2022: €168 million)
• Adjusted operating income at €324 million (2022: €184 million); ROS 11.8% (2022: 6.4%)
• Net cash from operating activities positive €297 million (2022: €126 million)
• Net debt to EBITDA leverage ratio improved sequentially to 3.2x
AkzoNobel CEO, Greg Poux-Guillaume, commented:
“Our third quarter results show a solid rebound in profit and continued improvement of our margins,
despite an adverse currency impact. While volumes were flat, we are increasingly benefitting from the
easing of raw material costs. Higher profits and improving working capital management both
contributed to a leverage ratio of 3.2, which keeps us on track to meet our year-end guidance.”
AkzoNobel in € millions
Revenue
Operating income
Adjusted operating income
Q3 2022
2,862
Q3 2023
2,741
11.8%
?% CC
2023 Outlook*
AkzoNobel expects the ongoing macro-economic uncertainties to continue and weigh on organic
volume growth. The company will focus on margin management, cost reduction, working capital
normalization and de-leveraging.
Cost reduction programs are expected to partly mitigate higher than expected inflationary pressure on
operating expenses for 2023. AkzoNobel expects declining raw material costs to have a favorable
impact on profitability.
Based on current market conditions, AkzoNobel targets to deliver around €1.45 billion adjusted
EBITDA.
Leverage guidance remains unchanged at less than 3 times net debt/EBITDA by the end of 2023,
excluding the Kansai Paint Africa acquisition which is not expected to close before year end.
*Outlook is based on organic volumes and constant currencies, and assumes no significant market disruptions.
About this media release
This media release covers the highlights for the quarter. We recommend reading the media release in combination with the full quarterly report.
The quarterly report provides additional information, including the IAS34 condensed consolidated financial statements. The interim condensed
consolidated financial statements were discussed and approved by the Board of Management and the Supervisory Board. These condensed
financial statements have been authorized for issue. All figures in this media release and in the AkzoNobel quarterly report are unaudited.
The report for the third quarter can be viewed and downloaded here:
Christian Neefestraat 2
1077 WW Amsterdam
P.O. Box 75730
1070 AS Amsterdam
Netherlands
https://akzo.no/Q3-2023-results
http://www.akzonobel.com
ROS, adjusted OPI, adjusted EPS, EBITDA and Adjusted EBITDA are Alternative Performance Measures (APM’s). AkzoNobel uses APM
adjustments to the IFRS measures to provide supplementary information on the reporting of the underlying developments of the business. A
reconciliation of the alternative performance measures to the most directly comparable IFRS measures can be found in the AkzoNobel quarterly
report.
Constant currencies calculations exclude the impact of changes in foreign exchange rates by retranslating the prior year local currency amounts
into euro at the current year’s foreign exchange rates.
Adjusted operating income = operating income excluding identified items.
Return on sales (ROS) is adjusted operating income as percentage of revenue.
This is a public announcement by Akzo Nobel N.V. pursuant to section 17 paragraph 1 of the European Market
Abuse Regulation (596/2014).
About AkzoNobel
We supply the sustainable and innovative paints and coatings that our customers, communities – and the environment – are increasingly relying
on. Our world class portfolio of brands – including Dulux, International, Sikkens and Interpon – is trusted by customers around the globe. We’re
active in more than 150 countries and have set our sights on becoming the global industry leader. It’s what you’d expect from a pioneering paints
company that’s committed to science-based targets and is taking genuine action to address globally relevant challenges and protect future
generations.
Not for publication – for more information
AkzoNobel Media Relations
Contact: Joost Ruempol
AkzoNobel Investor Relations
Contact: Kenny Chae
Safe Harbor Statement
This report contains statements which address such key issues as AkzoNobel’s growth strategy, future financial results, market positions, product
development, products in the pipeline and product approvals. Such statements should be carefully considered, and it should be understood that
many factors could cause forecast and actual results to differ from these statements. These factors include, but are not limited to, price
fluctuations, currency fluctuations, developments in raw material and personnel costs, pensions, physical and environmental risks, legal issues,
and legislative, fiscal, and other regulatory measures, as well as significant market disruptions such as the impact of pandemics. Stated
competitive positions are based on management estimates supported by information provided by specialized external agencies. For a more
comprehensive discussion of the risk factors affecting our business, please see our latest annual report.
Link to the third quarter report: https://akzo.no/Q3-2023-results