AkzoNobel delivers 15 by 20 promise and continues strong momentum in Q4, with 6% revenue growth in comparable currencies
On February 17, 2021, AkzoNobel (AKZOY) reported strong Q4 2020 results with a 6% revenue growth in comparable currencies, achieving a 15% return on sales (ROS) and 20.6% return on investment (ROI) for the year. Full-year revenues decreased by 8% to €8,530 million, while adjusted operating income rose by 11% to €1,099 million. Cost-saving measures yielded €243 million in savings, including €115 million structural savings. A €1 billion share buyback is announced for Q1 2022, alongside a proposed final dividend of €1.52 per share.
- Achieved a 15% return on sales excluding unallocated cost for 2020.
- 20.6% ROI exceeding 2020 targets.
- €243 million in cost savings with €115 million as structural savings.
- €1 billion share buyback planned for Q1 2022.
- Proposed final dividend increase to €1.52 per share from €1.49.
- Full-year revenue declined by 8% year-over-year.
- Q4 revenue decreased by 1% despite a 6% growth in volumes.
February 17, 2021
AkzoNobel delivers 15 by 20 promise and continues strong momentum in Q4, with
Akzo Nobel N.V. (AKZA; AKZOY) publishes results for fourth quarter and full-year 2020
Highlights full-year 2020
•
• ROI excluding unallocated cost2 up at
•
• Net cash from operating activities significantly increased to
•
•
• Final dividend proposed of
Highlights Q4 2020
• Strong growth in volumes of
• ROS excluding unallocated cost increased to
• Total cost savings
• Acquisitions of Titan Paints in Spain announced and New Nautical Coatings completed in Q4 2020
AkzoNobel CEO, Thierry Vanlancker, commented:
“Our 2020 results demonstrate structural performance improvement from the first phase of our transformation. Despite COVID-19 headwinds, we rose to the challenge and delivered our 15 by 20 promise, achieving
“We continued to look after our customers and everyone at AkzoNobel deserves enormous credit for their passion and commitment, especially in such a challenging year. We’ve now achieved organic growth for two quarters in a row and announced acquisitions including Titan Paints in Spain and New Nautical Coatings in the US. We transformed our systems and processes and expanded our industry-leading Paint the Future innovation ecosystem. We’ve also accelerated our People. Planet. Paint. approach to sustainability and been recognized by key benchmarks as the leader in the paints and coatings industry.
“What’s really exciting is that we’re literally only half-way through our transformation to reclaim our position as the reference in the industry. Our new Grow & Deliver strategy represents the second stage of our journey – which began in 2017 – to double the profit of AkzoNobel.”
| AkzoNobel in € millions | Q4 2019 | Q4 2020 | Δ% | Δ% CC3 |
| Revenue | 2,242 | 2,209 | ( | |
| Adjusted operating income4 | 223 | 294 | | |
| ROS | | | ||
| ROS excluding unallocated cost1 | | | ||
| Operating income | 173 | 243 | |
| AkzoNobel in € millions | FY 2019 | FY 2020 | Δ% | Δ% CC3 |
| Revenue | 9,276 | 8,530 | ( | ( |
| Adjusted operating income4 | 991 | 1,099 | | |
| ROS | | | ||
| ROS excluding unallocated cost1 | | | ||
| ROI excluding unallocated cost2 | | | ||
| Operating income | 841 | 963 | |
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Outlook 2021:
AkzoNobel targets to grow at least in line with its relevant markets. Although trends differ per region and segment with raw material inflation expected, margin management and cost-saving programs are in place to deliver 50 basis points increase in return on sales. The company targets a leverage ratio of 1-2 times net debt/EBITDA and commits to retain a strong investment grade credit rating.
The report for the fourth quarter and full-year 2020 can be viewed and downloaded https://akzo.no/Q42020-Report
1 ROS excluding unallocated cost is adjusted operating income as percentage of revenue for Decorative Paints and Performance Coatings; it excludes unallocated cost and invested capital
2 ROI excluding unallocated cost is adjusted operating income of the last 12 months as percentage of average invested capital, for Decorative Paints and Performance Coatings; it excludes unallocated corporate center costs and invested capital
3 Constant Currencies calculations exclude the impact of changes in foreign exchange rates
4 Adjusted operating income is operating income excluding identified items
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
We’ve been pioneering a world of possibilities to bring surfaces to life for well over 200 years. As experts in making coatings, there’s a good chance you’re only ever a few meters away from one of our products. 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 have set our sights on becoming the global industry leader. It’s what you’d expect from the most sustainable paints company, which has been inventing the future for more than two centuries.
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Safe Harbor Statement
This press release contains statements which address such key issues such 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 forecasted 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. 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, a copy of which can be found on our website:www.akzonobel.com.
Attachments
- 20210217 PDF Media release Q4FY Results
- 20210217 Q4-full year 2020 report
- Photo CEO Thierry Vanlancker
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