Dutch paint and coatings manufacturer AkzoNobel, parent of Awlgrip and Interlux, reported lower profits and revenues in its first quarter. The company said higher prices and cost reductions compensated for lower volumes and inflation. AkzoNobel maintained its outlook for fiscal 2025 and the midterm.
In the Performance Coatings segment, organic sales were up 1%, driven by positive pricing in all businesses and partly offset by lower volumes. Double-digit volume growth in Marine and Protective Coatings was more than offset by macroeconomic uncertainties impacting volumes, particularly in North America.
In the Marine and Protective Coatings division, first-quarter organic sales were up 13%, and revenue was up 12%, with double-digit growth in new-build and protective, the company stated in its financial report. The division had revenues of €403 million ($450 million), compared with €359 million ($406 million) a year ago.
“We delivered a better-than-expected quarter with positive pricing and strong cost reduction,” CEO Greg Poux-Guillaume said in a statement. “Our efficiency measures are paying off, allowing us to compensate for softer markets and persistent inflation. And there’s more to come as we continue to streamline our model, organization and footprint.”
About the early effects of tariffs, Poux-Guillaume added: “While macroeconomic volatility has been fueled by U.S. tariffs, our local-for-local and procurement derisking strategic principles continue to largely shield us from direct impacts on our cost base or our ability to deliver. However, we expect to be indirectly impacted by more timid customer demand as economic growth slows during this period of reassessment for global trade. All the more reason to remain focused on our self-help measures to achieve our full-year outlook and build a stronger AkzoNobel.”
For the full year, subject to market uncertainties and assuming constant currencies, AkzoNobel expects to deliver adjusted EBITDA of more than €1.55 billion ($1.76 billion).
For the midterm outlook, AkzoNobel aims to expand profitability to deliver an adjusted EBITDA margin of more than 16% and a return on investment between 16% and 19%, underpinned by organic growth and industrial excellence, the statement said.
