Akzo Nobel Q2 Adj. EBITDA Up, Margin Down; Now Sees FY24 Adj. EBITDA Towards Low End Of View

(RTTNews) - Akzo Nobel N.V. (AKZOY.PK, AKZOY), a Dutch maker of paints and performance coatings, reported Tuesday that its second-quarter operating income dropped 3 percent to 270 million euros from last year's 279 million euros.

Adjusted EBITDA, a key earnings metric, however, grew 1 percent to 400 million euros from 397 million euros in the prior year. Adjusted EBITDA margin was 14.4 percent, lower than last year's 14.5 percent.

Revenue went up 2 percent to 2.78 billion euros from prior year's 2.74 billion euros. Organic sales grew 2 percent, with volumes up 1 percent.

Looking ahead for fiscal 2024, AkzoNobel now expects to deliver adjusted EBITDA towards the lower end of its guidance range of 1.5 billion euros to 1.65 billion euros, based on current market conditions and constant currencies.

AkzoNobel CEO Greg Poux-Guillaume said, "For the third consecutive quarter, we demonstrated our ability to deliver growth in mixed markets, while expanding gross margin by 160 basis points. Although our operational costs are up, efforts to mitigate this inflationary cost pressure are accelerating and measures are already underway, above and beyond our industrial efficiency program. This will allow us to deliver on our 2024 ambitions, towards the lower end of our guidance and in line with current consensus."

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