Akzo Nobel has published results for its Q3 2022. The company’s revenue is up 19% due to strong pricing, despite increased macro-economic headwinds impacting results.

Highlights Grow & Deliver (compared with Q3 2021) 

  • Revenue up 19% and 14% higher in constant currencies, pricing up 13%
  • ROS at 6.4% (2021: 10.0%), resulting from lower volumes and higher raw material and freight costs, as well as inflation on operating expenses 
  • Adjusted EBITDA at €283 million (2021: €325 million) 
  • Q4 2022 adjusted operating income expected below €150 million 

Highlights Q3 2022 (compared with Q3 2021) 

  • Pricing up 13%, offsetting the increase of raw material and other variable costs. Volumes 5% lower, mainly due to destocking in the distribution channels in Decorative Paints in Europe and in Performance Coatings, as well as lower market demand in China 
  • Operating income at €168 million (2021: €226 million), includes €16 million negative impact from Identified items (2021: €15 million net negative impact) and €17 million negative from the retrospective hyperinflation impact of the first half-year of 2022. OPI margin 5.9% (2021: 9.4%) 
  • Adjusted operating income3 at €184 million (2021: €241 million); excluding the retrospective impact of hyperinflation accounting at €201 million 
  • Net cash from operating activities decreased to an inflow of €126 million (2021: inflow of €290 million) 
  • Net income attributable to shareholders at €84 million (2021: €164 million) • EPS from total operations at €0.48 (2021: €0.89); adjusted EPS from continuing operations at €0.57 (2021: €0.93) 
  • Interim dividend of €0.44 per share (2021: €0.44 per share) 

AkzoNobel CEO, Thierry Vanlancker, commented, “Our €201 million adjusted operating income, excluding the retrospective impact of hyperinflation accounting, brings our Q3 results in line with the market update issued at the end of September. Sharply increased macro-economic uncertainties negatively impacted consumer confidence. This resulted in destocking across several distribution channels in decorative paints Europe and performance coatings, while the market in China was impacted by the ongoing zero COVID-19 policy.”

Vanlancker continued, “Thanks to the strong commitment of our teams, we continue to offset the impact of raw material and freight cost inflation with pricing. We’ve now delivered cumulative pricing of 22% over the last two years. The macro-economic turbulence is expected to continue well into next year. We’ve therefore decided to suspend our targets for 2023 and will provide further guidance when announcing our full year 2022 results. In the meantime, we will continue to focus on our margin management and cost reduction initiatives.”


AkzoNobel targets to grow at or above its relevant markets, in line with the company’s Grow & Deliver strategy. Several end markets are expected to experience significant disruptions due to the ongoing deterioration in the macro-economic environment. As such, the company has suspended the ambition of €2 billion adjusted EBITDA for 2023 and will provide further guidance when announcing the full year 2022 results. AkzoNobel expects declining raw material cost to have a favorable margin impact for 2023. Margin management and cost reduction programs have been introduced to mitigate the current challenges. The company aims to return to a leverage ratio of around two times net debt/EBITDA, and is committed to retaining a strong investment grade credit rating.

For more information, visit: www.akzonobel.com.