AkzolNobel Q1 Report 2024

Highlights

• Organic sales up 2%, driven by higher volumes in both Paints and Coatings; revenue down 1%
• Revenue Organic sales up 2%, while revenue was down 1%. Organic sales growth was driven by higher volumes of 2% with growth in both Paints and Coatings. Volume growth in Paints was driven by SESA which grew low double digit, while growth in Coatings was driven by Powder which grew mid single digit.
• Operating income improved to €261 million (2023: €182 million)
• Operating income increased to €261 million (2023: €182 million), mainly due to a continued rebound in gross margins, higher volumes and lower identified items. Identified items of negative €13 million (2023: negative €36 million) were mainly related to restructuring-related costs. 
• Adjusted EBITDA €363 million (2023: €305 million), adjusted EBITDA margin 13.8% (2023: 11.5%)
• Adjusted EBITDA Adjusted EBITDA increased to €363 million (2023: €305 million).
• Adjusted EBITDA margin improved to 13.8% (2023: 11.5%).
• Net cash from operating activities negative €170 million (2023: negative €50 million) 
• Financing income and expenses
• Financing income and expenses amounted to negative €16 million (2023: negative €38 million).The €22 million decrease in expenses is mainly due to hyperinflation accounting and the release of the interest related part of a provision for an uncertain tax position. 
• Income tax
• The effective tax rate was 22.6% (2023: 29.8%). The decrease of the effective tax rate is mostly due to the release of a provision for an uncertain tax position, which decreased the effective tax rate by 10%, while hyperinflation increased the effective tax rate by 5%.