AkzoNobel Q3 Profit Down; Suspends 2023 Adj. EBITDA Target

(RTTNews) - AkzoNobel N.V. (AKZOY.PK), a Dutch paints and performance coating maker, reported that its third quarter net income attributable to shareholders declined to 84 million euros from last year's 164 million euros. Earnings per share from total operations dropped to 0.48 euros from 0.89 euros in the previous year.

Adjusted earnings per share from continuing operations were 0.57 euros down from 0.93 euros in the prior year.

Operating income for the quarter decreased to 168 million euros from the prior year's 226 million euros, despite pricing initiatives more than compensating for the continued significant impact from raw material and freight costs inflation. Operating expenses increased as a result of increased manufacturing, supply chain and IT costs.

But quarterly revenue rose to 2.86 billion euros from 2.41 billion euros in the previous year. Pricing up 13%. Revenue was 19% higher, and 14% higher in constant currencies, mainly resulting from significant pricing initiatives. Volumes were 5% lower, mainly due to destocking in the distribution channels in Decorative Paints Europe and in Performance Coatings, as well as lower market demand in China.

The dividend policy remains unchanged and is to pay a stable to rising dividend. An interim dividend of 0.44 euros per share will be paid. In 2021, an interim dividend of 0.44 euros per share was paid.

AkzoNobel targets to grow at or above its relevant markets, in line with the company's Grow & Deliver strategy.

The macro-economic turbulence is expected to continue well into next year. Therefore, the company has suspended the ambition of 2 billion euros adjusted EBITDA for 2023 and will provide further guidance when announcing the full year 2022 results.

In the meantime, the company said it will continue to focus on its margin management and cost reduction initiatives.

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