FX.co ★ Akzo Nobel Q3 Profit Down - Quick Facts

Akzo Nobel N.V. (AKZOY.PK, AKZOY), a leading Dutch manufacturer of paints and performance coatings, has disclosed a decrease in net income attributable to shareholders for the third quarter, falling to 163 million euros from 189 million euros in the corresponding period the previous year. Earnings per share from total operations declined to 0.95 euros from 1.11 euros year over year.

In a positive development, the quarterly adjusted earnings per share from continuing operations rose to 1.14 euros, up from 0.99 euros recorded in the prior year.

The company's operating income for the third quarter saw a reduction to 259 million euros compared to 354 million euros last year. This decline was influenced by identified items totaling a negative 44 million euros and increased operating costs on a yearly basis, although there was a sequential reduction during the quarter owing to implemented cost-saving measures. Identified items were predominantly related to restructuring expenses tied to ongoing restructuring programs. However, in 2023, positive identified items arose from the divestment of properties.

Revenues for the third quarter decreased slightly to 2.67 billion euros from the previous year's 2.74 billion euros.

Organic sales saw a 1% increase, attributed to volume growth in the Coatings segment, driven by notable demand in Marine and Protective coatings, which experienced high single-digit growth, and Powder Coatings with mid single-digit growth. For Paints, volumes remained stable, with expansions in SESA and LATAM regions, steady performance in EMEA, and continued market challenges in China.

The company also announced its intention to maintain an interim dividend payment of 0.44 euros per share, consistent with the previous year.

Looking ahead, and considering current market conditions and stable currency levels, Akzo Nobel anticipates achieving an adjusted EBITDA of approximately 1.5 billion euros by 2024.

For the mid-term, the company's strategic goals include enhancing profitability to achieve an adjusted EBITDA margin exceeding 16%, coupled with a return on investment ranging between 16% and 19%, driven by organic growth and a focus on operational excellence.