AkzoNobel’s results for Q1 2024 show organic sales increased by two per cent, driven by volume growth in the Paints and Coatings segments. Revenue fell by one per cent, but operating income improved to €261 million (2023: €182 million).
Adjusted EBITDA was €363 million (2023: €305 million) and adjusted EBITDA margin was 13.8 per cent (2023: 11.5 per cent). Net cash from operating activities was negative €170 million (2023: negative €50 million).
“Our performance for the first quarter combined volume growth in both Paints and Coatings with margin expansion, as it did in the previous quarter,” said Greg Poux-Guillaume, CEO of AkzoNobel. “After growing volumes two per cent in Q1, we’re preparing for further growth in areas where we see market opportunities such as in Powder, where we’re adding new production lines. Our momentum and the progress of our efficiency measures bode well for a strong 2024 performance in markets which remain mixed.”
Based on current market conditions and constant currencies, AkzoNobel targets to deliver between €1.5 billion and €1.65 billion adjusted EBITDA in 2024, while reducing its leverage to around 2.3 times net debt / EBITDA by the end of the year.