AkzoNobel, the parent of Interlux, International Paint, Awlgrip, Sikkens and Cetol, yesterday released the results for the first half of 2024.
Overall revenue increased 2% from €5.40 billion ($5.86 billion) in the year-ago half to €5.42 billion ($5.88 billion). Operating income grew 15% to €531 million ($576.3 million), while adjusted EBITDA grew 9% to €763 million ($828.2 million) during the half.
Net cash from operating activities fell from €255 million ($276.78 million) in the year-ago half to a loss of €19 million ($20.62 million) in 2024. The company had free cash flow loss of €134 million ($145.44 million) at the end of the first six months of the year.
“For the third consecutive quarter, we demonstrated our ability to deliver growth in mixed markets while expanding gross margin by 160 basis points,” CEO Greg Poux-Guillaume said in a statement. “Although our operational costs are up, efforts to mitigate this inflationary cost pressure are accelerating, and measures are already underway, above and beyond our industrial efficiency program.”
Marine and protective coatings revenue increased 4% from €741 million ($804.2 million) to €771 million ($836.77 million) during the first half. Organic sales in the segment increased 10% year-over-year during second quarter. According to the statement, the gains were driven by strong demand in South Asia and the Middle East.
The company released the following guidance for the remainder of the year:
“Based on current market conditions and constant currencies, AkzoNobel expects to deliver 2024 adjusted EBITDA toward the lower end of its full-year guidance range of €1.5 billion to €1.65 billion. For the midterm, 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.”
