Akzo Nobel Reports Strong Rebound in Fourth-Quarter Results

By Christian Moess Laursen

Overview

Akzo Nobel, the Dutch paints company known for its brands such as Dulux, Polycell, and Cuprinol, announced a strong rebound in fourth-quarter results. Despite slightly missing market expectations, the company remains optimistic about higher adjusted earnings for the year.

Key Details

• Operating income for the period more than doubled to 214 million euros ($230.1 million) from EUR103 million in the same quarter a year prior.
• This increase was mainly driven by a rebound in gross margins and higher volumes.
• After excluding exceptional and other one-off items, operating profit rose to EUR221 million, surpassing EUR126 million in the fourth quarter of 2022.
• Revenue on a constant-currency basis grew by 4% to EUR2.53 billion, reflecting higher volumes and pricing.
• However, on a reported basis, revenue declined by 3%.
• Full-year adjusted operating income increased to EUR1.07 billion from EUR708 million, slightly below consensus.
• Full-year revenue on a reported basis decreased by 2% to EUR10.67 billion.
• For 2024, Akzo Nobel expects adjusted earnings before interest, taxes, depreciation, and amortization to range between EUR1.5 billion and EUR1.75 billion, compared to EUR1.43 billion in 2023.
• The company has proposed a stable final dividend of EUR1.54 per share.