Akzo Nobel N.V. has published results for Q4 and full-year 2022

 

• Revenue up 8% and 9% higher in constant currencies; pricing up 11%, volumes 9% lower

• Operating income at €103 million (2021: €205 million), resulting from lower volumes, higher raw material and freight costs, and inflation on operating expenses; OPI margin 4.0% (2021: 8.5%)

• Adjusted operating income at €126 million (2021: €209 million), excludes €23 million negative impact from Identified items (2021: €4 million negative impact); ROS3 at 4.8% (2021: 8.7%)

• Acquisition of wheel liquid coatings business of Lankwitzer Lackfabrik completed in December

• Share buyback of €500 million finalized in December

 

• Revenue up 13% and 11% higher in constant currencies, pricing up 14%, volumes 7% lower

• Operating income at €708 million (2021: €1,118 million), resulting from lower volumes, higher raw material and freight costs, inflation on operating expenses and €46 million negative impact from hyperinflation accounting. OPI margin 6.5% (2021: 11.7%)

• Adjusted operating income at €789 million (2021: €1,092 million), excludes €81 million negative impact from Identified items (2021: €26 million positive impact); ROS at 7.3% (2021: 11.4%)

• Adjusted EBITDA at €1,157 million (2021: €1,436 million)

• Final dividend proposed of €1.54 per share (2021: €1.54 per share)

 

AkzoNobel CEO, Greg Poux-Guillaume, commented, “Looking back on 2022, it was a year of persistent worldwide uncertainty as global events caused significant cost inflation, disrupted supply chains and prompted declining consumer confidence. Our Q4 results continued to be impacted by softer demand, as well as the lingering effects of COVID-19 in some of our most important markets.

 

“Moving forward, with our margin management and cost reduction programs firmly in place, we plan to mitigate the ongoing pressure from cost inflation and aim to deliver €1.2 to €1.5 billion adjusted EBITDA for 2023, based on current market conditions. Since I joined, I’ve personally witnessed the dedication of our teams around the world, and I’m confident that together we’ll continue to improve the performance of AkzoNobel.” 

 

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 mitigate the ongoing pressure from inflation in 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 €1.2 to €1.5 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.