AkzoNobel announced that revenue for the Q3 2020 were €2,276 million, down 5% from the third quarter of 2019, but up 1% on a constant currency basis. Volumes were up 3%, showing strong demand for decorative paints, partly offset by lower volumes of performance Coatings and unfavorable price/mix of 1 per cent. Meanwhile, adjusted operating income up 18% at €353 million (2019: €300 million);

“We delivered an excellent performance for the third quarter, with revenue growth in constant currencies, and business return on sales up at 17.7% driven by strong discipline on margins and cost savings. These results were made possible by the continued commitment of all AkzoNobel colleagues around the world, adapting to the challenges presented by COVID-19,” Thierry Vanlancker, CEO, AkzoNobel, said.

He further added: “Although the macro-economic environment remains uncertain, we’re continuing to build on our solid position as a frontrunner in our industry, committed to serving our customers with more innovative and sustainable solutions. That's why we're proud to have received a Platinum rating from EcoVadis for corporate social responsibility and sustainable procurement.”

During the quarter, the company delivered a total cost savings of 49 million, of which €27 million structural savings related to transformation initiatives. Net cash from operating activities improved by 46% to €457 million (2019: €312 million). On October 19, the acquisition of Titan Paints in Spain was announced, with completion expected before the end of Q1 2021.

€300 million share buyback announced, to be completed in the first half of 2021.

Sharing the outlook, the company informs AkzoNobel has suspended its 2020 financial ambition in response to the significant market disruption resulting from the pandemic. Headwinds related to COVID-19 continued to ease, although demand trends differ per region and segment in an uncertain macro-economic environment. Raw material costs are expected to have a favorable impact for the fourth quarter of 2020. Continued margin management and cost-saving programs are in place to address the current challenges. The company targets a leverage ratio of 1-2 times net debt/EBITDA and commits to retain a strong investment grade credit rating.