AkzoNobel N.V. published its results for Q3 2023.

Highlights Q3 2023 (compared with Q3 2022):
• Revenue in constant currencies was €2,741 million, up 5% on pricing, despite flat volumes; reported revenue 4% down on unfavorable exchange rates
• Operating income improved to €354 million (2022: €168 million)
• Adjusted operating income at €324 million (2022: €184 million); ROS 11.8% (2022: 6.4%)
• Net cash from operating activities positive €297 million (2022: €126 million)
• Net debt to EBITDA leverage ratio improved sequentially to 3.2x

“Our third quarter results show a solid rebound in profit and continued improvement of our margins, despite an adverse currency impact,” said AkzoNobel CEO Greg Poux-Guillaume. “While volumes were flat, we are increasingly benefitting from the easing of raw material costs. Higher profits and improving working capital management both contributed to a leverage ratio of 3.2, which keeps us on track to meet our year-end guidance.”

AkzoNobel expects the ongoing macro-economic uncertainties to continue and weigh on organic volume growth. The company will focus on margin management, cost reduction, working capital normalization and de-leveraging.

Cost reduction programs are expected to partly mitigate higher than expected inflationary pressure on operating expenses for 2023. AkzoNobel expects declining raw material costs to have a favorable impact on profitability. Based on current market conditions, AkzoNobel targets to deliver around €1.45 billion adjusted EBITDA.