AKZONOBEL'S REVENUES INCREASE 19% DESPITE STRONG PRICE INCREASES

AkzoNobel announced that for the first time in its history, revenues rose 19% as well as 14% in constant currency. Prices, on the other hand, increased by 13%. In addition, adjusted operating income for the coming fourth quarter is expected to be less than EUR 150 million. Also, prices increased 13%, offsetting the increase in raw material and other variable costs.

The company had an operating result of 168 million euros. Although there was a 16% reduction compared to last year, it was both hyperinflation and the items identified that had an impact. Gross operating margin (OPB) was 5.9% compared to 9.4% as of June 2021.

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

“Thanks to the strong commitment of our teams, we continue to offset the impact of raw material and freight cost inflation with prices. We have now delivered cumulative pricing of 22% over the past two years. The macroeconomic turbulence is expected to continue well into next year. We have therefore decided to suspend our 2023 targets and will provide further guidance when we announce our full year 2022 results. In the meantime, we will continue to focus on our margin management and cost reduction initiatives,” he concluded.

AKZONOBEL’S REVENUES INCREASE 19% DESPITE STRONG PRICE INCREASES

Submit a Comment Cancel reply