AkzoNobel CEO, Greg Poux-Guillaume, commented, “In the first quarter of 2023, our key markets proved to be resilient despite unfavorable macroeconomic conditions. We delivered higher volumes than expected with healthy pricing dynamics, leading to further margin expansion.

“We were able to achieve a strong sequential improvement in profitability based on solid margin management, better than anticipated volumes in Europe and rebound in China, benefiting both Paints and Coatings. We also announced our intention to acquire a small but complementary decorative paints business in China, which will further strengthen our number two retail position in this important and profitable market.”

Highlights Q1 2023 (compared with Q1 2022)

• Revenue up 5% and up 8% in constant currencies
• Pricing up 7%, more than offsetting increase of raw material and freight costs
• Volumes 3% lower; Europe showing resilience, China rebounding
• Operating income at €182 million (2022: €232 million); adjusted operating income at €218 million (2022: €230 million); ROS at 8.2% (2022: 9.1%)
• Net cash from operating activities negative €50 million (2022: negative €102 million)
• Intended acquisition of Chinese Decorative Paints business from Sherwin-Williams announced in April 2023; completion expected in the second half of 2023

2023 Outlook

AkzoNobel expects the ongoing macro-economic uncertainties to continue and weigh on organic volume growth. The company will focus on margin management, cost reduction, working capital normalization and de-leveraging.

The report for the first quarter can be viewed and downloaded: https://akzo.no/Q1-2023-results.