AkzoNobel 2024 Financial Report: Profit Up by 22.62%

On January 29, AkzoNobel released its financial performance report for the fiscal year 2024, revealing a sales figure of €10.711 billion (approximately $11.618 billion or ¥827.4 billion), which remained relatively stable compared to the previous year. The company experienced a 2% organic sales growth, driven by a 1% increase in volume and a 1% rise in price/mix. The growth in coatings, particularly in marine coatings, protective coatings, and powder coatings, was notable, especially in China. However, the decorative paints segment saw flat sales, with growth in LATAM and SESA offset by ongoing weakness in the Chinese market. Currency fluctuations negatively impacted revenue by 1%. Adjusted EBITDA rose by 3% to €1.478 billion, while operating profit fell by 10.88% to €917 million, primarily due to restructuring costs. The net profit attributable to shareholders increased by 22.62% to €542 million (approximately $588 million).

In the fourth quarter of 2024, AkzoNobel achieved a sales revenue of €2.619 billion, marking a 4% year-on-year increase. Organic sales grew by 1% due to price increases, although the volume of decorative paints declined, particularly in Asia, which was offset by strong growth in the LATAM market. The price/mix also rose by 1%, and currency effects positively impacted revenue by 3%. Adjusted EBITDA for the quarter increased by 3% to €321 million, while operating profit dropped by 40.65% to €127 million, again affected by restructuring costs. The net profit attributable to shareholders was €21 million, down 48.78% year-on-year.

CEO Greg Poux-Guillaume commented, “2024 was a year of organic growth for us, with an increase in adjusted EBITDA, demonstrating our ability to grow under mixed market conditions. In the fourth quarter, we raised adjusted EBITDA by 3%, maintaining costs in fixed currency terms compared to last year. We continue to make progress while accelerating our self-help measures.”

Looking ahead, Poux-Guillaume stated, “We do not expect a significant market rebound in 2025. The self-help measures we are implementing will increasingly contribute to profitability. We are making AkzoNobel stronger, more vibrant, and more competitive. When our end markets begin to grow again, it will greatly benefit us and help us achieve our mid-term goals.”

In the decorative paints segment, sales revenue for the fourth quarter increased by 3% to €1.017 billion in fixed currency terms. Organic sales remained flat, with price/mix growth offset by a decline in volume. The decline in sales in China and EMEA countered strong growth in LATAM and SESA. The price/mix rose by 2%, and currency positively impacted sales revenue by 4%.

Operating income for the decorative paints segment was €41 million, down from €99 million in 2023, primarily due to identified projects resulting in a negative €33 million. The identified projects in 2024 mainly included restructuring-related costs, while those in 2023 included gains from asset divestitures. Excluding identified projects, operating income slightly decreased due to a decline in gross margin. Adjusted EBITDA was €113 million, down from €121 million in 2023, with an adjusted EBITDA margin of 11.1% compared to 12.3% in 2023.

AkzoNobel's performance in 2024 reflects a mixed bag of results, with some segments showing growth while others face challenges. The company is focused on strengthening its position and preparing for future market conditions.