AkzoNobel publish financial results for second quarter 2022

AkzoNobel has published its financial results for the second quarter of 2022. The report reveals a 14 per cent increase in revenue despite lockdowns in China and destocking in EMEA DIY channels.

Some of the highlights of Q2 in 2022 include: Net income attributable to shareholders at €106 million (2021: €261 million), net cash from operating activities decreased to negative €52 million (2021: positive €168 million), and pricing up 16%; offsetting the increase of raw material and other variable costs.

AkzoNobel CEO, Thierry Vanlancker, commented: “Our Q2 results were clearly impacted by two months of lockdowns in China and destocking in decorative paint do-it-yourself channels in Europe. Demand from our customers got back on track in June. Despite the significant Q2 headwinds we were able to match the volumes from pre-COVID Q2 2019.

“I’m extremely proud of how the organization stays focused and has the agility to push ahead with our Grow & Deliver ambitions of €2 billion EBITDA in 2023 – while mitigating increasing macro-economic and geo-political uncertainty with further cost reduction and margin management initiatives.”

The outlook for AkzoNobel is to grow at or above its relevant markets, in line with the company’s Grow & Deliver strategy. Trends differ per region and segment, with raw material and other variable cost inflation (including freight) expected to gradually ease towards the end of 2022.

AkzoNobel will aim to continue to offset raw material and other variable cost inflation (including freight) through pricing initiatives. Macroeconomic uncertainties have increased due to geopolitical tension, the resurgence of COVID-19 and inflation.

Assuming there are no further significant market disruptions, AkzoNobel aims to deliver the €2 billion adjusted EBITDA target for 2023, and an average annual 50 basis points increase in return on sales over the period 2021-2023. The company will aim to target a leverage ratio of 1-2 times net debt/EBITDA and is committed to retaining a strong investment grade credit rating.