Akzo Nobel sees macroeconomic uncertainties continuing as profit falls, but beats views

By Anthony O. Goriainoff

Akzo Nobel NV said Tuesday that first-quarter net profit fell after booking higher costs but beat consensus estimates, and that it expects the current macroeconomic uncertainties to continue and weigh on organic volume growth in 2023.

The Dutch paints company --which houses the Dulux, Polycell and Cuprinol brands -- made a net income for the quarter of 94 million euros ($103.9 million) compared with EUR154 million for the first quarter of 2022, and net income estimates of EUR89.2 million, taken from FactSet and based on two analysts' forecasts.

Adjusted operating income--one of the company's preferred metrics which strips out exceptional and other one-off items--was EUR218 million, compared with EUR230 million a year earlier. The company provided a consensus figure of EUR193 million for the period.

Adjusted earnings before interest, taxes, depreciation and amortization were EUR305 million compared with EUR317 million the year before.

Quarterly revenue rose to EUR2.66 billion from EUR2.53 billion. Company-compiled consensus for first quarter revenue was EUR2.63 billion.

The company said that based on current market conditions its adjusted Ebitda target for 2023 was in the EUR1.2 billion to EUR1.5 billion range.

The company said its cost-reduction programs are expected to mitigate the continuing pressure from inflation on operating expenses for 2023, and that it expects declining raw material costs to have a favorable impact on profitability.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

-Anthony O. Goriainoff

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

04-25-23 0145ET

Copyright (c) 2023 Dow Jones & Company, Inc.