FX.co ★ Akzo Nobel Q1 Profit Climbs; Backs FY Adj. EBITDA Outlook - Quick Facts

Akzo Nobel N.V., a leading Dutch manufacturer of paints and performance coatings, has seen a significant increase in its first quarter net income attributed to shareholders. Ascending from 94 million euros in the previous year, the net income has nearly doubled to 181 million euros. The earnings per share from total operations have gone up as well, increasing from 0.55 euros to 1.06 euros.

The adjusted earnings per share from operations in progress have escalated from 0.73 euros in the previous year to 1.12 euros. This increase in operating income for the quarter can be attributed to a sustained improvement in gross margins, higher volumes, and decreased identifiable items. This led to a rise in operating income from 182 million euros in the prior year to 261 million euros.

In contrast, the quarterly revenue witnessed a slight decrease, falling from 2.66 billion euros to 2.64 billion euros. Adverse currency impacts contributed a 3% decline, which led to an overall 1% fall in revenue. However, the organic sales for the quarter showed positive movement, with a 2% increase propelled by a 2% expansion in volumes, observed in both Paints and Coatings sections.

Furthermore, an interim dividend of 0.44 euros, identical to what was paid in 2022, was released in 2023. A final dividend of 1.54 euros per common share for 2023, unchanged from 2022, is set to be proposed for approval at the Annual General Meeting on April 25, 2024.

Looking forward to the 2024 fiscal year, AkzoNobel anticipates delivering an adjusted EBITDA ranging from 1.5 billion euros to 1.65 billion euros. For the mid-term, the company aims to boost profitability by delivering an adjusted EBITDA margin above 16% and a return on investment between 16% and 19%. This forecast is grounded on the firm’s aspirations for organic growth and industrial excellence. Keep an eye on rttnews.com for more insights about earnings news, calendars, and reports on stocks.