Akzo Nobel N.V. has published results for the third quarter of 2021 whereby the company's revenue went up by 6% but the operating income was down by 32% as compared to the same quarter last year. Pricing is up 9% compared with Q3 2020. Total revenue stood at €2.410 billion, up 6% as against last year. Raw material and other variable costs increased €278 million compared with Q3 2020. Adjusted operating income dropped by 32% and stood at €241 million (2020: €353 million).

 

“During the third quarter, as predicted, extraordinary levels of raw material costs and supply disruptions impacted our business,” said AkzoNobel CEO Thierry Vanlancker. “Despite supply constraints and the resulting backlog, we were able to demonstrate 6% revenue growth. 

 

“I’m very proud of our team’s focus on our own pricing, as demonstrated by the 10% increase run rate by the end of the third quarter,” added Vanlancker. “We’re on track to have our own pricing actions offset the raw material inflation by year-end. As we’ve already indicated, the headwinds are likely to be with us going into 2022. However, we’ve established a strong pathway for our Grow & Deliver ambition and remain confident in the €2 billion EBITDA target for 2023.”

 

The company targets to grow at least in line with its relevant markets. Trends differ per region and segment, with significant raw material cost inflation and supply constraints expected to continue through mid-2022. Margin management and cost discipline are in place to deliver an average annual 50 basis points increase in return on sales over the period 2021-2023. The company is confident in the €2 billion EBITDA target for 2023, in line with its Grow & Deliver strategy. AkzoNobel targets a leverage ratio of 1-2 times net debt/EBITDA and commits to retain a strong investment grade credit rating.