AkzoNobel has reported its fourth quarter and full year 2022 results which show Q4 operating income fell to €103 million from €205 million in Q4 2021, despite revenue increasing eight per cent (nine per cent in constant currencies). The company said the drop resulted from macro-economic headwinds impacting lower volumes, raw material and freight costs, and inflation on operating expenses.
Adjusted operating income for Q4 2022 was €126 million (Q4 2021: €209 million), excluding €23 million negative impact from identified items (Q4 2021: €4 million negative impact).
AkzoNobel said pricing rose 11 per cent while volumes decreased eight per cent.
For full-year 2022, revenue increased 13 per cent (11 per cent higher in constant currencies) and pricing rose 14 per cent while volumes fell seven per cent.
Operating income was €708 million (2021: €1.118 billion), a drop resulting from lower volumes, higher raw material and freight costs, inflation on operating expenses, and €46 million negative impact from hyperinflation accounting.
Adjusted operating income was €789 million (2021: €1.092 billion), excluding an €81 million negative impact from identified items (2021: €26 million positive impact). Adjusted EBITDA was reported at €1.157 billion (2021: €1.436 billion).
“Looking back on 2022, it was a year of persistent worldwide uncertainty as global events caused significant cost inflation, disrupted supply chains and prompted declining consumer confidence,” said Greg Poux-Guillaume, CEO of AkzoNobel. “Our Q4 results continued to be impacted by softer demand, as well as the lingering effects of COVID-19 in some of our most important markets.
“Moving forward, with our margin management and cost reduction programmes firmly in place, we plan to mitigate the ongoing pressure from cost inflation and aim to deliver €1.2 to €1.5 billion adjusted EBITDA for 2023, based on current market conditions.”