Publishes results for first quarter 2022
Highlights Grow & Deliver (compared with Q1 2021):
•Revenue up 12% and 10% higher in constant currencies1, driven by strong pricing (up 17%)
• Return on Sales at 9.1% (2021: 13.6%), resulting from continued raw material and freight costs inflation and supply constraints
•Adjusted EBITDA at €317 million (2021: €391 million)
Highlights Q1 2022 (compared with Q1 2021):
•Pricing initiatives more than offset the increase of raw material and other variable costs (including freight), which combined increased €334 million compared with Q1 2021. Volumes 7% lower
•Operating income at €232 million (2021: €303 million), includes €2 million net positive impact from identified items (2021: €4 million net negative impact). OPI margin 9.2% (2021: 13.4%)
•Adjusted operating income3 at €230 million (2021: €307 million)
•Net cash from operating activities decreased to negative €102 million (2021: negative €31 million)
•Net income attributable to shareholders at €154 million (2021: €217 million)
•EPS from total operations at €0.87 (2021: €1.15); adjusted EPS from continuing operations at €0.86 (2021: €1.18)
Akzonobel CEO, Thierry Vanlancker, commented: “We continued to make good progress, with strong revenue growth in both paints and coatings in the first quarter. Through our vigorous pricing initiatives, we are in line with the unprecedented variable cost inflation that impacted our industry during the quarter. I’m very proud of our organization, and our first quarter results are proof of the ongoing hard work and commitment of all our employees.
Although uncertainties remain with regard to amongst others the sanctions on Russia, the COVID-19 resurgence in China and continued supply constraints – especially in North America – we remain confident in realizing our Grow & Deliver strategy.”
Outlook: Akzonobel targets 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 cost inflation (including freight) expected to gradually ease during the second half of 2022. Akzonobel aims to continue to offset raw material and other variable cost inflation (including freight) through pricing initiatives. Market uncertainties have increased due to the sanctions on Russia and the resurgence of COVID-19 in China, among others. 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. Akzonobel targets a leverage ratio of 1-2 times net debt/EBITDA and is committed to retaining a strong investment grade credit rating.