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ER - AkzoNobel delivers organic sales growth and adjusted EBITDA expansion in Q4 and full-year 2024; accelerates efficiency measures

Company: Akzo Nobel N.V. Date: 2025-01-29 Language: English Register to download
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# **Media release**

January 29, 2025

# **AkzoNobel delivers organic sales growth and adjusted EBITDA expansion in Q4 and full-year 2024; accelerates efficiency measures**

# **Akzo Nobel N.V. (AKZA; AKZOY) publishes results for Q4 and full-year 2024**

# **Highlights Q4 2024 (compared with Q4 2023)**

- Organic sales up 1% on price/mix; revenue up 4%
- Adjusted EBITDA up 3% to €321 million (Adjusted EBITDA margin 12.3%)
- Operating income €127 million (2023: €214 million), impacted mainly by restructuring costs
- Net cash from operating activities €398 million (2023: €574 million)

# **Highlights full-year 2024 (compared with full-year 2023)**

- Organic sales up 2% driven by higher volumes and increase in price/mix; revenue flat
- Adjusted EBITDA up 3% to €1,478 million (Adjusted EBITDA margin 13.8%)
- Operating income €917 million (2023: €1,029 million), impacted mainly by restructuring costs
- Net cash from operating activities €673 million (2023: €1,126 million)
- Final dividend proposed of €1.54 per share (2023: €1.54)

# **AkzoNobel CEO Greg Poux-Guillaume commented:**

"2024 was a year where we grew organically while increasing our adjusted EBITDA, demonstrating our ability to grow in mixed market conditions. In Q4, we increased adjusted EBITDA by 3%, with costs at constant currencies now in line with the previous year. We continued to make progress while accelerating our self-help measures.

"Looking ahead, we don't expect a significant market rebound in 2025. The self-help measures we are taking will increasingly contribute to the bottom line. We aim to deliver 2025 adjusted EBITDA above €1.55 billion, while the company targets leverage below 2.5 times net debt/adjusted EBITDA (below 2.9 times net debt/EBITDA) by the end of 2025 and around 2 times in the mid-term, while remaining committed to retaining a strong investment grade credit rating.

"We're making AkzoNobel stronger, more dynamic and more competitive. This will serve us well when our end markets start growing again, putting us on track to deliver on our mid-term ambitions."

| AkzoNobel in € millions | Q4 2023 | Q4 2024 | Δ% | Δ% organic |
|-------------------------|---------|---------|----|------------|
| Revenue                 | 2,529   | 2,619   | 4% | 1%         |
| Operating income        | 214     | 127     |    |            |
| Adjusted EBITDA         | 313     | 321     | 3% |            |
| Adjusted EBITDA margin  | 12.4%   | 12.3%   |    |            |

| AkzoNobel in € millions | FY 2023 | FY 2024 | Δ% | Δ% organic |
|-------------------------|---------|---------|----|------------|
| Revenue                 | 10,668  | 10,711  | -  | 2%         |
| Operating income        | 1,029   | 917     |    |            |
| Adjusted EBITDA         | 1,429   | 1,478   | 3% |            |
| Adjusted EBITDA margin  | 13.4%   | 13.8%   |    |            |

# **Outlook**

Based on current market conditions and constant currencies, AkzoNobel expects to deliver 2025 adjusted EBITDA above €1.55 billion.

> Christian Neefestraat 2 T +31 (0)88 969 7833 P.O. Box 75730 www.akzonobel.com 1070 AS Amsterdam Netherlands

1077 WW Amsterdam E media.relations@akzonobel.com

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 targets leverage below 2.5 times net debt/adjusted EBITDA (below 2.9 times net debt/EBITDA) by the end of 2025 and around 2 times in the mid-term, while remaining committed to retaining a strong investment grade credit rating.

## **Recent highlights**

#### **Going the extra mile to paint the world's highest motorable village**

Residents of three remote villages in India are literally on top of the world after our products were used to help protect more than 100 homes and several buildings of cultural significance. The unique "Let's Colour" project was staged in Komic (the world's highest village reachable by a motorable road); Hikkim (home to the world's highest post office); and Langza (where marine fossils older than the Himalayas have been found).

### **Interpon brings color and style to Egypt's new capital**

Our Interpon powder coatings are helping to protect Egypt's huge New Administrative Capital near Cairo from extreme temperatures. We've partnered with Delemar Industrial Group – the region's largest supplier of facades and architectural products – and are providing a full range of architectural powder coatings for the city's ongoing construction. Designed to work as a hi-tech model for Egypt's future, Interpon's durability will play an important role in the project's long-term vision.

#### **AkzoNobel's largest European solar energy plant goes live in Poland**

A major solar energy plant – our largest in Europe – has been installed at the Pilawa site in Poland, further powering the company's efforts to transition all production locations to renewable electricity. Covering nearly three hectares (around the size of four football pitches), there are 3,551 solar panels, with an installed capacity of 1.9 MWp. They'll provide nearly a quarter of the decorative paints facility's electricity needs.

#### **About this media release**

This media release covers the highlights for the quarter. We recommend reading the media release in combination with the full quarterly report. The quarterly report provides additional information, including the IAS34 condensed consolidated financial statements. The interim condensed consolidated financial statements were discussed and approved by the Board of Management and the Supervisory Board. These condensed financial statements have been authorized for issue. All figures in this media release and in the AkzoNobel quarterly report are unaudited.

Forward-looking statements are based on organic volumes and constant currencies, and assume no significant market disruptions. Please read the Safe Harbor Statement in the full quarterly report.

The report for this quarter can be viewed and downloaded here <https://akzo.no/Q4-2024-results>

Organic sales, Adjusted EBITDA and Adjusted EBITDA margin (%) and leverage are Alternative Performance Measures (APM's). AkzoNobel uses APM adjustments to the IFRS measures to provide supplementary information on the reporting of the underlying developments of the business. A reconciliation of the alternative performance measures to the most directly comparable IFRS measures can be found in the AkzoNobel quarterly report.

*This is a public announcement by Akzo Nobel N.V. pursuant to section 17 paragraph 1 of the European Market Abuse Regulation (596/2014).*

#### **About AkzoNobel**

Since 1792, we've been supplying the innovative paints and coatings that help to color people's lives and protect what matters most. Our world class portfolio of brands – including Dulux, International, Sikkens and Interpon – is trusted by customers around the globe. We're active in more than 150 countries and use our expertise to sustain and enhance everyday life. Because we believe every surface is an opportunity. It's what you'd expect from a pioneering and long-established paints company that's dedicated to providing more sustainable solutions and preserving the best of what we have today – while creating an even better tomorrow. Let's paint the future together.

#### **Not for publication – for more information**

AkzoNobel Media Relations AkzoNobel Investor Relations T +31 (0)88 - 969 7833 Contact: Joost Ruempol [Media.relations@akzonobel.com](mailto:Media.relations@akzonobel.com)

T +31 (0)88 - 969 0139 Contact: Kenny Chae [Investor.relations@akzonobel.com](mailto:Investor.relations@akzonobel.com)

#### **Safe Harbor Statement**

This media release contains statements which address such key issues as AkzoNobel's growth strategy, future financial results, market positions, product development, products in the pipeline and product approvals. Such statements should be carefully considered, and it should be understood that many factors could cause forecast and actual results to differ from these statements. These factors include, but are not limited to, price fluctuations, currency fluctuations, developments in raw material and personnel costs, pensions, physical and environmental risks, legal issues, and legislative, fiscal, and other regulatory measures, as well as significant market disruptions such as the impact of pandemics. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies. For a more comprehensive discussion of the risk factors affecting our business, please see our latest annual report.