skip to main content
Find Insight DIY on
* * *

UK DIY News

AkzoNobel Reports Q3 Profit Growth

akzonobel_logo_stacked_rgb_0 725 x 500

AkzoNobel has published results for Q3 2023, advising that the profit rebound continued in the third quarter, with solid profit growth and robust cash generation.

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 in € millions

Q3 2022

Q3 2023

Δ%

Δ% CC

Revenue

2,862

2,741

(4%)

5%

Operating income

168

354

111%

 

Adjusted operating income

184

324

76%

 

ROS

6.4%

11.8%

 

 

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.”

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.

Review the investor presentation here 

Source : AkzoNobel

For all the very latest news and intelligence on the UK's largest home improvement and garden retailers, sign up for the Insight DIY weekly newsletter.  

25 October 2023

Related News

view more UK DIY News
*

Insight provides a host of information I need on many of our company’s largest customers. I use this information regularly with my team, both at a local level as well as with our other international operations. It’s extremely useful when sharing market intelligence information with our corporate office.

*
Paul Boyce - European CEO, QEP Ltd.
Newsletters

Don't miss out on all the latest, breaking news from the DIY industry