AkzoNobel has reported positive growth momentum in its Q3 2024 financial performance, despite facing challenging market conditions. The company’s organic sales increased by 1%, primarily driven by volume growth, although overall revenue saw a slight dip of 3% compared to Q3 2023.
Key Financials (Q3 2024 vs. Q3 2023):
Revenue: Down 3%
Operating income: €259 million (2023: €354 million)
Adjusted EBITDA: €394 million (2023: €414 million), with a slight margin decrease to 14.8% from 15.1% last year
Net cash from operating activities: €294 million (2023: €297 million)Despite the drop in operating income, AkzoNobel CEO Greg Poux-Guillaume expressed confidence in the company’s strategic direction. He emphasized the firm’s ability to sustain growth even in flat markets, noting that this quarter marked the fourth consecutive period of volume expansion. While operating costs were higher than last year, they have been trending down sequentially, helping to expand gross margins. The company continues to push forward with new cost-cutting and portfolio initiatives to ensure it achieves its mid-term targets.
For 2024, AkzoNobel expects to generate adjusted EBITDA of around €1.5 billion, reflecting its steady trajectory toward long-term financial goals.
Outlook for 2024
AkzoNobel remains optimistic about its 2024 outlook. The company anticipates adjusted EBITDA of approximately €1.5 billion for the year, contingent on current market conditions and stable currency rates. It has set a target to reduce its leverage to 2.7 times net debt/EBITDA by the end of 2024, with a mid-term goal of bringing this figure closer to 2 times. Throughout, AkzoNobel aims to preserve its strong investment-grade credit rating.
Recent Highlights
Superdurable Powder Coatings Enhance Sustainability Initiatives
AkzoNobel recently expanded its superdurable powder coatings range with the launch of Interpon D2525 Low-E, designed to provide superior protection in harsh environments. This addition is part of the company’s ongoing efforts to reduce carbon emissions, building on its 2023 introduction of a standard durability coating option. The new range is particularly beneficial for architectural applications in extreme weather conditions.
Supporting the Use of Recycled Plastics in Consumer Electronics
In a bid to advance sustainability in the consumer electronics sector, AkzoNobel has developed a professional-grade series of coatings designed specifically for products made from post-consumer recycled (PCR) plastics. These coatings offer enhanced protection for electronics such as computers, mobile phones, and household appliances, making it easier and more reliable for manufacturers to incorporate recycled materials.
2025 Color of the Year: ‘True Joy’
AkzoNobel has unveiled its Color of the Year for 2025, a vibrant yellow hue named True Joy™. Reflecting optimism and positivity, the shade is designed to bring warmth and happiness into living spaces. Supported by three complementary palettes, True Joy was chosen based on extensive research into cultural, economic, and design trends, which highlighted a global desire for joy, self-expression, and craftsmanship.AkzoNobel’s Q3 2024 performance underscores its resilience and focus on strategic growth, even amidst higher costs and market uncertainties. With continued volume growth, new product innovations, and a strong focus on sustainability, the company remains well-positioned to meet its financial goals for 2024 and beyond.
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