• Organic sales up 2%, driven by volume growth in both Paints and Coatings; revenue down 1%
• Operating income improved to €261 million (2023: €182 million)
• Adjusted EBITDA €363 million (2023: €305 million), adjusted EBITDA margin 13.8% (2023: 11.5%)
• Net cash from operating activities negative €170 million (2023: negative €50 million)
AkzoNobel CEO, Greg Poux-Guillaume, commented:
"Our performance for the first quarter combined volume growth in both Paints and Coatings with margin expansion, as it did in the previous quarter. After growing volumes 2% in Q1, we're preparing for further growth in areas where we see market opportunities such as in Powder, where we're adding new production lines. Our momentum and the progress of our efficiency measures bode well for a strong 2024 performance in markets which remain mixed."
2024 Outlook
Based on current market conditions and constant currencies, AkzoNobel targets to deliver between €1.5 and €1.65 billion adjusted EBITDA in 2024, while reducing its leverage to around 2.3 times net debt/EBITDA by the end of the year.
Recent highlights
Capacity expansion completed at Vietnam multi-site
A major investment project has been completed at our production plant in Bac Ninh province near Hanoi in Vietnam. It will help to strengthen the company's position in Asia and sharpen our focus on more sustainable manufacturing. Five new powder coating lines have been added at the multi-site, along with a line for producing water-based products for the consumer electronics market.
Renewable electricity landmark achieved in Latin America
All our manufacturing locations in Latin America are now operating on 100% renewable electricity, further boosting the company's ambition to reduce carbon emissions across the full value chain by 50% by 2030 (baseline 2018). The milestone follows on from similar achievements in North America (early 2023) and Europe (early 2022). Growth targeted in Pakistan as new site takes root
We've opened a new €26 million manufacturing plant in Faisalabad - the company's largest investment in Pakistan to date. The 25-acre site, which has facilities for making decorative paint, wood finishes, automotive and specialty coatings, coil coatings and protective coatings, will help to meet increasing customer demand across a variety of markets.
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/Q1-2024-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.
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