Akzo Nobel N.V. has published results for third quarter 2021. Highlights for Q3 2021 include:
- Pricing up 9% compared with Q3 2020. Revenue 6% higher (up 5% from Q3 2019, in constant currencies)
- Raw material and other variable costs increased $323 million compared with Q3 2020
- Adjusted operating income lower at $280 million (2020: $411 million), ROS3 at 10.0% (2020: 15.5%)
- $1.16 billion share buyback started April 27, 2021; $650 million completed by end of Q3 2021
- First paints and coatings company to commit to a carbon reduction target of 50% by 2030 (2018 baseline) for the full value chain, verified by the Science Based Targets initiative
“During the third quarter, as predicted, extraordinary levels of raw material costs and supply disruptions impacted our business,” said Thierry Vanlancker, CEO of AkzoNobel. “Despite supply constraints and the resulting backlog, we were able to demonstrate 6% revenue growth.
“I’m very proud of our team’s focus on our own pricing, as demonstrated by the 10% increase run rate by the end of the third quarter. We’re on track to have our own pricing actions offset the raw material inflation by year-end.
“As we’ve already indicated, the headwinds are likely to be with us going into 2022. However, we’ve established a strong pathway for our Grow & Deliver ambition and remain confident in the €2 billion EBITDA target for 2023.”
Other highlights include:
Bright Skies Unveiled as Color of the Year
An airy light blue has been revealed as our 2022 Color of the Year. The stunning collection of colors will inspire interior design and surfaces for the aerospace, automotive and consumer electronics markets. According to AkzoNobel’s trend research, what people need most is a breath of fresh air. That theme is reflected in Bright Skies – a versatile shade also showcased in their ColorSurfaces E17 coatings collection.
“Let’s Color” Hits New Heights
The stunning Pão de Açúcar cable car in Rio de Janeiro, Brazil, was the location for one of AkzoNobel’s most recent “Let’s Color” projects. Colorful paintings of plants and animals were added to the three cable car stations, which are used to take visitors to the top of Sugarloaf Mountain. Artist Bruno Big used 540 liters of AkzoNobel’s Coral paint to bring the surface of the stations to life. The designs help to portray the incredible biodiversity of the surrounding landscape and reflect the importance of raising environmental awareness.
SBTi Approves Carbon Reduction Target
AkzoNobel’s commitment to setting science-based sustainability targets has been officially validated by the Science Based Targets initiative (SBTi) – confirming AkzoNobel as the first paints and coatings company to receive this endorsement. They have also restated their carbon reduction target across the whole value chain and increased it to 50% by 2030 (baseline 2018). This brings it in line with the company’s carbon reduction ambition in their own operations.
Partnership with Mercedes-Benz Extended in China and Indonesia
AkzoNobel agreed to extend their partnership agreement with Mercedes-Benz for another four years. It means the company will continue to be a recommended supplier of vehicle refinish products and services in China and a preferred partner in Indonesia. The deal was confirmed after extensive testing and analysis of the product assortments and services provided by AkzoNobel’s premium Sikkens brand.
Four Chinese Startups Win Paint the Future Collaboration Opportunity
Four startups have been invited to collaborate with AkzoNobel on their innovative solutions after being announced as the winners of AkzoNobel’s recent Paint the Future China startup challenge. The announcement was made at the end of a two-day accelerator event, which brought 17 finalists together with 30 AkzoNobel experts for face-to-face discussions about collaborative opportunities that could potentially push the boundaries of the paints and coatings industry.
Consumer Electronics Business Recognized by Dell Technologies
AkzoNobel’s Consumer Electronics business recently received an award from Dell for helping them on their journey from solvent-based to water-based technology. The company supplies Dell with durable, water-based basecoat and clearcoat technologies for the various plastic and metal substrates used in their devices. The cutting-edge, low-VOC formulation is an ideal eco-friendly alternative.