AkzoNobel publishes Q4 and full year 2023 results
AkzoNobel CEO, Greg Poux-Guillaume
Highlights Q4 2023 (compared with Q4 2022), as reported by the company, include:
- Revenue in constant currencies up 4% on higher volumes and pricing (reported revenue -3%)
- Operating income improved to €214 million (2022: €103 million)
- Adjusted operating income at €221 million (2022: €126 million); ROS at 8.7% (2022: 4.8%); €244 million before €23 million negative impact from hyperinflation accounting
- Net cash from operating activities positive €574 million (2022: €291 million)
Highlights full-year 2023 (compared with full-year 2022), as reported by the company, include:
- Revenue in constant currencies up 5% driven by pricing (reported revenue -2%)
- Operating income improved to €1,029 million (2022: €708 million)
- Adjusted operating income at €1,074 million (2022: €789 million), despite €77 million adverse currency effects from translation; ROS at 10.1% (2022: 7.3%)
- Adjusted EBITDA at €1,429 million (2022: €1,157 million), despite €92 million adverse currency effects from translation
- Net cash from operating activities positive €1,126 million (2022: €263 million)
- Net debt to EBITDA leverage ratio improved to 2.7 (2022: 3.8)
- Final dividend proposed of €1.54 per share (2022: €1.54)
AkzoNobel CEO, Greg Poux-Guillaume, commented: “2023 was a year in which AkzoNobel delivered a clear rebound in performance. Our volumes stabilised, outperforming many of our markets, and our profits rebounded on resilient pricing and the first effects of raw material deflation. In parallel, our efforts to transform our company gathered pace, allowing us to absorb persistent global inflation and unfavorable currency effects to beat the targets we set ourselves at the beginning of the year.
“We have good momentum heading into 2024 and we expect to resume growing volumes while delivering further margin – and profit – expansion. We aim to deliver €1.50 to €1.65 billion adjusted EBITDA for 2024, based on current market conditions and to achieve a net debt to EBITDA leverage ratio to around 2.3 times by the end of 2024.”
For the mid-term, AkzoNobel aims to expand profitability to deliver an adjusted EBITDA margin of above 16% and a return on investment between 16% and 19%, underpinned by organic growth and industrial excellence. The company aims to lower its leverage to around two times in the mid-term, while remaining committed to retaining a strong investment grade credit rating.
In 2023, AkzoNobel launched next generation coatings technology which will help the beverage can industry move to products free from materials of concern. The company’s Packaging Coatings business launched the first two products in its new Accelstyle range which are BPx-NI (free of intentionally added bisphenols). Designed for the exterior of conventional two-piece aluminium beverage cans, both are free from (intentionally added) bisphenols. AkzoNobel is also building a new production plant in Spain at its Vilafranca site, which will produce BPx-NI coatings for the metal packaging industry in Europe, Middle East and Africa.