Akzo Nobel N.V. (AKZA; AKZOY) publishes results for first quarter 2021
Highlights Q1 2021
• Revenue up 10% and 16% higher in constant currencies1 with strong growth in Asia
• ROS2 increased to 13.6% (Q1 2020: 10.4%)
• €300M share buyback completed on April 16, 2021; €1bn share buyback starts April 27, 2021
• Acquisition of Titan Paints in Spain completed in March 2021
Q1 2021 (compared with Q1 2020)
• Revenue up 10% and 16% higher in constant currencies, with volumes up 16% and price up 2%, mainly due to strong end market demand. Compared with Q1 2019*, revenue was up 10% in constant currencies
• Operating income up 62% at €303M (2020: €187M); OPI margin improved to 13.4% (2020: 9.1%)
• Adjusted operating income3 up 43% at €307M (2020: €214M) and excludes €4M negative impact from identified items, mainly related to transformation initiatives (2020: €27M negative identified items related to transformation initiatives)
• Net cash from operating activities improved by €129M to an outflow of €31M (2020: outflow of €160M)
• Net income from total operations up 90% at €217M (2020: €114M)
• EPS from total operations up 95% at €1.15 (2020: €0.59); adjusted EPS4 from continuing operations up 66% at €1.18 (2020: €0.71)
*Q1 2019 comparatives are included to allow for proper comparison in light of the COVID-19 impact in 2020.
AkzoNobel CEO, Thierry Vanlancker, commented:
“We delivered very strong results for the quarter, including 16% growth and higher profitability. It’s encouraging how we’ve pivoted from our successful 15 by 20 ambition with a powerful start to our new Grow & Deliver strategy, which is already having a positive impact on our results. “Ongoing challenges related to raw materials are an industry-wide issue and require our continued attention. I’m very proud of how our teams continue to serve our customers, while dealing with the significant disruption. Going forward, we’ll remain focused on offsetting higher raw material costs with pricing initiatives and cost discipline, to ride out the wave and build on our strong foundation for growth.”
AkzoNobel in € millions
Adjusted operating income3
Polar Pod partnership to push boundaries of scientific exploration
A pioneering expedition which will send a manned oceanographic platform drifting around Antarctica has brought AkzoNobel on board as exclusive paints and coatings partner. The Polar Pod will enable scientists and researchers to study the Antarctic Circumpolar Current, which has a major influence on the Earth’s climate. AkzoNobel will support the 1000t platform for the next five years, from project construction through to the completion of its three-year mission, which is expected to start in December 2023.
Paint the Future leads to investment in application technology from Qlayers
We’ve invested in pioneering coatings application technology from Qlayers – one of the winners in our 2019 Paint the Future startup challenge. Their innovative industrial system offers a fully automated solution that is safer, more consistent and faster than the manual coating processes currently being used. By eliminating overspray, it’s a sustainable solution that also saves costs.
DIY made simple thanks to new Dulux range
With the UK firmly bitten by the DIY bug, we recently launched our new Dulux Simply Refresh range, which refreshes walls in a single coat. It’s available in two carefully curated color collections – One Coat and Feature Wall – for both neutral and bold palettes. As well as removing the hassle from decorating, the new products will also help to save valuable time.
Leading the charge for e-mobility powder coatings
As global demand for electric vehicles – and e-mobility in general – continues to accelerate, our Powder Coatings business has switched on to the growing needs of its customers by developing advanced technologies to help power the industry into the future. We now offer a dedicated powder coatings portfolio for manufacturers of electric vehicles and components, who are increasingly looking for world class solutions to help protect motors, battery systems and electrical storage units.
Acquisition of Titan Paints in Spain completed
We completed the acquisition of 100% of the shares of Industrias Titan S.A.U. (Titan Paints) – strengthening our paints business and footprint in Spain to become one of the market references in the region. The transaction includes three production facilities and seven logistics and service centers for decorative paints, including one of the most modern manufacturing plants for water-based paints in Europe, located near Barcelona. The business generated revenue of around €80 million. Titan Paints – which also has a relevant presence in Portugal – is one of Spain’s best-known brands. The business shares AkzoNobel’s commitment to sustainable product innovation, with much of its portfolio having received recognition for environmental performance.
1 Constant currencies calculations exclude the impact of changes in foreign exchange rates
2 ROS is adjusted operating income as percentage of revenue; ROS excluding unallocated cost was reported in relation to the Winning together: 15 by 20 strategy and is no longer reported
3 Adjusted operating income = operating income excluding identified items
4 Adjusted earnings per share are the basic earnings per share from operations, excluding identified items and taxes thereon