Akzo Nobel Profit Beats Estimates on China Demand, Higher Prices

Akzo Nobel NV’s first-quarter earnings beat analyst estimates following stronger demand in China with price adjustments helping to offset inflationary pressures and rising costs.

(Bloomberg) — Akzo Nobel NV’s first-quarter earnings beat analyst estimates following stronger demand in China with price adjustments helping to offset inflationary pressures and rising costs.

The Dutch paintmaker’s adjusted earnings before interest, taxes, depreciation and amortization declined slightly to €305 million ($337 million), the company said Tuesday, higher than the €275 million projected by analysts.

Akzo Nobel has been battling surging costs of raw materials and cost inflation. Passing on those pricing pressures helped boost the company’s revenue in the first quarter even as volumes fell 3% compared to last year. The firm also benefited from the easing of Covid-19 restrictions in China and a more “resilient” market in Europe.

The owner of the Dulux paint brand reiterated its financial outlook for the year and said it is still targeting adjusted Ebitda of €1.2 billion to €1.5 billion this year. 

More stories like this are available on bloomberg.com

©2023 Bloomberg L.P.