AkzoNobel has recorded increased revenue of €2.85 billion for the second quarter 2022, a rise of 14 per cent despite the impact of lockdowns in China and destocking in EMEA DIY channels.
Compared with Q2 2021, pricing rose 16 per cent, offsetting the increase of raw material and other variable costs, while volumes were nine per cent lower.
Other figures include:
- Operating income at €205 million compared to 2021’s €384 million. Includes €44 million negative impact from identified items compared to 2021’s €49 million net positive impact
- OPI margin of 7.2 per cent (2021: 15.3 per cent)
- Adjusted operating income of €249 million compared to 2021’s €335 million
- Net cash from operating activities decreased to negative €52 million compared to 2021’s positive €168 million.
“Our Q2 results were clearly impacted by two months of lockdowns in China and destocking in decorative paint do-it-yourself channels in Europe,” said outgoing AkzoNobel CEO Thierry Vanlancker. “Demand from our customers got back on track in June. Despite the significant Q2 headwinds we were able to match the volumes from pre-COVID Q2 2019.
“I’m extremely proud of how the organisation stays focused and has the agility to push ahead with our Grow & Deliver ambitions of €2 billion EBITDA in 2023, while mitigating increasing macroeconomic and geopolitical uncertainty with further cost reduction and margin management initiatives.”
Looking to the second half of 2022, AkzoNobel is targeting growth at or above its relevant markets. “Trends differ per region and segment, with raw material and other variable cost inflation, including freight, expected to gradually ease towards the end of 2022,” the company said. “AkzoNobel aims to continue to offset raw material and other variable cost inflation, including freight, through pricing initiatives. Macroeconomic uncertainties have increased due to geopolitical tension, the resurgence of COVID-19 and inflation.
“Assuming there are no further significant market disruptions, AkzoNobel aims to deliver the €2 billion adjusted EBITDA target for 2023, and an average annual 50 basis points increase in return on sales over the period 2021 to 2023.”