April 19, 2017
Further volume growth and record profitability
- Record Q1 profitability (EBIT, ROS and ROI) for AkzoNobel
- Revenue up in all Business Areas and 7% overall, mainly due to higher volumes and acquisitions
- Volumes up 4% driven by Decorative Paints and Specialty Chemicals
- EBIT up in all Business Areas and 13% overall, at €376 million (2016: €334 million), reflecting the positive effects of volume growth, continuous improvement and cost discipline
- Operating income up 5% at €376 million (2016: €357 million)
- Profitability improved, with ROS at 10.3% (2016: 9.7%) and ROI at 15.2% (2016: 14.5%)
- Adjusted EPS up 8% at €1.05 (2016: €0.97)
- Net cash outflow from operating activities improved to €287 million (2016: €336 million)
- In Q1 2017, we announced a review of strategic options for the separation of our Specialty Chemicals business
- Share repurchase program in progress. The total number of shares repurchased up to March 31, 2017 was 2.17 million common shares (€144 million)
Outlook:
We continue to anticipate positive developments for EMEA, North America and Asia, improving during the year, while Latin America is expected to stabilize. Market trends experienced in the second part of 2016, including for the marine and oil and gas industries, are expected to continue during the first half of 2017.
We have structurally improved our ability to respond to developments in our markets and continue taking appropriate measures to deal with higher raw material prices in an inflationary environment.
We expect EBIT for 2017 to be around €100 million higher than 2016, as a result of growth momentum and continuous improvement, assuming no material change in market and economic dynamics.
For further information, please see the attachments.
| € million | 2016 | 2017 | ||||
| unless stated otherwise | Q1 | Q2 | Q3 | Q4 | FY | Q1 |
| Revenue | 3,430 | 3,711 | 3,600 | 3,456 | 14,197 | 3,661 |
| Decorative Paints | 861 | 1,055 | 1,021 | 898 | 3,835 | 922 |
| Performance Coatings | 1,388 | 1,473 | 1,406 | 1,398 | 5,665 | 1,471 |
| Specialty Chemicals | 1,206 | 1,206 | 1,202 | 1,169 | 4,783 | 1,289 |
| Other | -25 | -23 | -29 | -9 | -86 | -21 |
| EBITDA | 487 | 642 | 594 | 385 | 2,108 | 534 |
| D&A | -153 | -151 | -152 | -150 | -606 | -158 |
| EBIT (operating income excluding identified items) | 334 | 491 | 442 | 235 | 1,502 | 376 |
| Decorative Paints | 52 | 131 | 123 | 51 | 357 | 77 |
| Performance Coatings | 186 | 222 | 199 | 152 | 759 | 187 |
| Specialty Chemicals | 164 | 179 | 168 | 118 | 629 | 176 |
| Other | -68 | -41 | -48 | -86 | -243 | -64 |
| Identified items | 23 | 0 | 12 | -18 | 17 | - |
| Operating Income | 357 | 491 | 454 | 217 | 1,519 | 376 |
| Finance Income/expenses | -27 | -22 | -33 | -32 | -114 | -22 |
| Results from associates and joint ventures | 20 | 8 | 10 | 5 | 43 | 8 |
| Profit before tax | 350 | 477 | 431 | 190 | 1,448 | 362 |
| Income tax | -86 | -138 | -131 | -39 | -394 | -101 |
| Non-controlling interests | -23 | -27 | -15 | -17 | -82 | -21 |
| Discontinued operations | -1 | - | - | -1 | -2 | - |
| Net Income attributable to shareholders | 240 | 312 | 285 | 133 | 970 | 240 |
| Tax Rate | 25% | 29% | 30% | 21% | 27% | 28% |
