AkzoNobel's Q1 2021 revenue is up 10% and 16% higher in constant currencies, with volumes up 16% and price up 2%, mainly due to strong end market demand.

The operating income was up 62% at €303 million whereas OPI margin improved to 13.4%. Adjusted operating income up 43% at €307 million whereas net income from total operations up 90% at €217 million.

AkzoNobel CEO, Thierry Vanlancker said, “We delivered very strong results for the quarter, including 16% growth and higher profitability. It’s encouraging how we’ve pivoted from our successful 15 by 20 ambition with a powerful start to our new Grow & Deliver strategy, which is already having a positive impact on our results."

“Ongoing challenges related to raw materials are an industry-wide issue and require our continued attention. I’m very proud of how our teams continue to serve our customers, while dealing with the significant disruption. Going forward, we’ll remain focused on offsetting higher raw material costs with pricing initiatives and cost discipline, to ride out the wave and build on our strong foundation for growth,” commented Vanlancker.

AkzoNobel targets to grow at least in line with its relevant markets. Trends differ per region and segment with raw material disruption and inflation expected, especially in Q2 and Q3. Margin management and cost discipline programs are in place to deliver 50 basis points increase in return on sales. The company targets a leverage ratio of 1-2 times net debt/EBITDA and commits to retain a strong investment grade credit rating.