AkzoNobel publishes results for Q2 2023
Highlights Q2 2023 (compared with Q2 2022)
- Revenue 4% down on unfavorable exchange rates, 3% up in constant currencies1
- Pricing up 5%, volumes 1% lower
- Operating income up 36% at €279 million (2022: €205 million)
- Adjusted operating income2 up 25% at €311 million; ROS3 11.3% (2022: €249 million and 8.7%)
- Net cash from operating activities positive €305 million (2022: negative €52 million)
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 €1.40 to €1.55 billion adjusted EBITDA.
The company aims to lower its leverage ratio to less than 3.4 times net debt/EBITDA, including the impact of the Kansai Paint Africa acquisition, by the end of 2023 and return to around 2 times post-2023.
AkzoNobel