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Media release
AkzoNobel delivers growth for the third consecutive quarter
July 23, 2024
Akzo Nobel N.V. (AKZA; AKZOY) publishes results for Q2 2024
Highlights Q2 2024 (compared with Q2 2023)
- Organic sales up 2%, with volumes up 1%; Revenue up 2%
- Operating income €270 million (2023: €279 million)
- Adjusted EBITDA €400 million (2023: €397 million); Adjusted EBITDA margin 14.4% (2023: 14.5%)
- Net cash from operating activities positive €151 million (2023: positive €305 million)
Highlights half-year 2024 (compared with half-year 2023)
- Organic sales up 2%, driven by higher volumes and positive price/mix; revenue flat
- Operating income €531 million (2023: €461 million)
- Adjusted EBITDA €763 million (2023: €702 million); Adjusted EBITDA margin 14.1% (2023: 13.0%)
- Net cash from operating activities negative €19 million (2023: positive €255 million)
AkzoNobel CEO Greg Poux-Guillaume commented:
“For the third consecutive quarter, we demonstrated our ability to deliver growth in mixed markets, while expanding gross margin* by 160 basis points. Although our operational costs are up, efforts to mitigate this inflationary cost pressure are accelerating and measures are already underway, above and beyond our industrial efficiency program. This will allow us to deliver on our 2024 ambitions, towards the lower end of our guidance and in line with current consensus**.”
*Excluding the impact for hyperinflation accounting and identified items
**Consensus published on our website, dated July 11, 2024
Q2 2023
2,741
Q2 2024
2,784
△%
2%
Δ% organic
2%
Q2 2023
279
Q2 2024
270
△%
(3%)
Δ% organic
Q2 2023
397
Q2 2024
400
△%
1%
Δ% organic
Q2 2023
14.5%
Q2 2024
14.4%
△%
Δ% organic
Outlook
Based on current market conditions and constant currencies, AkzoNobel expects to deliver 2024 adjusted EBITDA towards the lower end of its full-year guidance range of €1.5 to €1.65 billion.
Recent highlights
Pintuco brand helps town in Colombia to flourish
The Pintuco brand has rolled out our “Flourish” identity in Colombia and Ecuador. It marks the latest stage in the integration of Grupo Orbis, which we acquired in 2022. Pintuco’s products have recently been helping attract tourists to Usiacurí in Colombia. More than 18,000m² of the town’s rooftops have been painted with a macro-mural featuring eye-catching images of birds. The facades of a large number of homes have also been repainted. Over the course of the three-year project, visitor numbers have soared from 400 a month to 24,000 a month.
AkzoNobel goes full throttle with new powder coating for two-wheelers
Motorcycle manufacturers can now kickstart improved cost and energy savings following the launch of Interpon A3000 from AkzoNobel’s Powder Coatings business. The company’s first single layer powder coating for two-wheelers, the newly introduced product can help customers accelerate their efficiency gains, without compromising on performance or aesthetics. Interpon A3000 is focused in particular on the key Indian market, home to well over 200 million two-wheeled vehicles. Last year alone, it’s estimated that more than 18 million two-wheelers were sold in India. The product will also be available globally.
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.
Forward looking statements are based on organic volumes and constant currencies, and assume no significant market disruptions. Please read the Safe Harbor statement in the full quarterly report.
The report for the first quarter can be viewed and downloaded here: https://akzo.no/Q2-2024-results
Organic Sales, Adjusted EBITDA and Adjusted EBITDA margin (%) 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.
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
Since 1792, we’ve been supplying the innovative paints and coatings that help to color people’s lives and protect what matters most. 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 use our expertise to sustain and enhance everyday life. Because we believe every surface is an opportunity. It’s what you’d expect from a pioneering and long-established paints company that’s dedicated to providing sustainable solutions and preserving the best of what we have today – while creating an even better tomorrow. Let’s paint the future together.
