AkzoNobel recently published their 2023 and Q4 results. The results show a solid year and Q4 confirms positive momentum in margin expansion and deleveraging efforts that are expected to continue in 2024. 

• Revenue in constant currencies up 4% on higher volumes and pricing (reported revenue -3%)

• Operating income improved to €214 million (2022: €103 million)

• Adjusted operating income at €221 million (2022: €126 million); ROS at 8.7% (2022: 4.8%); €244 million before €23 million negative impact from hyperinflation accounting
• Net cash from operating activities positive €574 million (2022: €291 million)

Highlights full-year 2023 (compared with full-year 2022)

• Revenue in constant currencies up 5% driven by pricing (reported revenue -2%)
• Operating income improved to €1,029 million (2022: €708 million)

• Adjusted operating income at €1,074 million (2022: €789 million), despite €77 million adverse currency effects from translation; ROS at 10.1% (2022: 7.3%)
• Adjusted EBITDA at €1,429 million (2022: €1,157 million), despite €92 million adverse currency effects from translation

• Net cash from operating activities positive €1,126 million (2022: €263 million)
• Net debt to EBITDA leverage ratio improved to 2.7 (2022: 3.8)
• Final dividend proposed of €1.54 per share (2022: €1.54)

AkzoNobel CEO, Greg Poux-Guillaume, commented:

“2023 was a year in which AkzoNobel delivered a clear rebound in performance. Our volumes stabilized, outperforming many of our markets, and our profits rebounded on resilient pricing and the first effects of raw material deflation. In parallel, our efforts to transform our company gathered pace, allowing us to absorb persistent global inflation and unfavorable currency effects to beat the targets we set ourselves at the beginning of the year.

“We have good momentum heading into 2024 and we expect to resume growing volumes while delivering further margin – and profit – expansion. We aim to deliver €1.50 to €1.65 billion adjusted EBITDA for 2024, based on current market conditions and to achieve a net debt to EBITDA leverage ratio to around 2.3 times by the end of 2024.”

Outlook Mid-Term

For the mid-term, AkzoNobel aims to expand profitability to deliver an adjusted EBITDA margin of above 16% and a return on investment between 16% and 19%, underpinned by organic growth and industrial excellence. The company aims to lower its leverage to around 2 times in the mid-term, while remaining committed to retaining a strong investment grade credit rating.

Recent Highlights

Pioneering Low-Energy Powder Coating Launched

AkzoNobel introduced an industry-first architectural powder coating which can be cured at temperatures as low as 150°C – while still being Qualicoat class one certified. Curing at temperatures 30°C lower than traditional powder coatings means that Interpon D1036 Low-E can help customers cut energy consumption by as much as 20%. It can also cure up to 25% faster than conventional powders.

First Bio-Based Interior Coating for KIA Motors Created with Rapeseed and Pine Rosin

KIA Motors is using bio-based paint supplied by AkzoNobel for the inside of its new EV9 electric SUV. It’s the first time the vehicle manufacturer has specified an interior bio-based coating. Two kinds of bio- rosin were used to create the product, one extracted from rapeseed, the other from pine rosin.

Major Investment in Coatings Technology to Support Beverage Can Industry Transition 

AkzoNobel launched next generation coatings technology which will help the beverage can industry move to products free from materials of concern. Our Packaging Coatings business launched the first two products in its new AccelstyleTM range which are BPx-NI (free of intentionally added bisphenols). Designed for the exterior of conventional two-piece aluminum beverage cans, both are free from (intentionally added) bisphenols. AkzoNobel is also building a new production plant in Spain at our Vilafranca site, which will produce BPx-NI coatings for the metal packaging industry in Europe, Middle East and Africa.