Investor Update
April 23, 2025 | 1 |
Q1 2025 Highlights
Adj. EBITDA flat YoY at CC on lower volumes, higher prices and strong cost reduction
Q1 2025 YoY | Highlights | ||
• | Organic sales flat | • OPEX flat YoY despite 8% wage + inflation | |
• Volumes -2%, incl. Turkey in-year rebalancing | - >70% of SG&A net reductions already achieved | ||
• | Price/mix +2% | - | CLA negotiations completed on target |
• Adj. EBITDA at €357m (13.7% margin), | - | France restructuring underway | |
€364m excluding FX impact | • Q2 OPEX projected down YoY | ||
• Adj. leverage ratio 2.8x
Investor update | Q1 2025
• €500m 10Y bond @4.00% issued in March
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Volume development
Q1 -1% excl. Turkey rebalancing; NAM softer, Deco China improving
Q1 2025 | |||
Deco EMEA | Flattish excl. Turkey rebalancing; improved trends in Pro | -LSD% | |
Deco LATAM | Brazil impacted by timing of price increase | ||
-MSD% | |||
Deco SE Asia | India outperforming in softer market; Vietnam rebounding; Indonesia slow | ||
Deco China | Volume sequentially improving, pricing stable | -LSD% | |
Powder Coatings | Architectural and Auto soft; Industrial & Consumer up | -LSD% | |
Marine & Protective | Marine strong; Protective accelerating | +DD% | |
Automotive & Specialty | Auto/VR remain soft in NAM & EMEA; Aero strong in EMEA/Asia, down in NAM | -HSD% | |
Industrial Coatings | Packaging and Coil soft; Wood slightly up | -LSD% | |
AkzoNobel | -2% | ||
Organic volumes YoY |
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Investor update | Q1 2025 LSD = low single-digit, MSD = mid single-digit, HSD = high single-digit, DD = double-digit.
Tariff impact
Manageable cost impact given localized production; real risk is demand / macro
RM + FG: €25m annualized EBITDA impact
on US exports(after mitigation)
RoW | Customer exports to US |
Raw materials (RM) | Deco: nil |
90% locally sourced | Coatings: limited |
Finished goods (FG) | Sales risk to Akzo < €50m |
98% of sales locally produced | |
RM + FG: €10m annualized EBITDA impact | |
on US imports(after mitigation) |
Assumption: reciprocal tariffs of
- 145% on US imports from China
- 125% on US exports to China
- 10% between US and RoW
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Investor update | Q1 2025 Estimated tariff impact on AkzoNobel.
SG&A actions - headcount and base pay
Neutralized 8% salary increase in '24; < half expected in '25 + further streamlining
Number of employees
35,700 | ||||
35,400 | ||||
34,600 | ||||
1,600 FTE reduction | 34,100 | |||
Total commitment: 2,200 FTE reduction | ||||
Q2'24 | Q3'24 | Q4'24 | Q1'25 | Q2'25 |
Annualized base pay (indexed)
CLA '25 | ||||||
CLA '24 | mitigated by | |||||
lower FTEs | ||||||
102 | ||||||
100 | ||||||
Dec'23 | Mar | Jun | Sep | Dec'24 | Mar | Jun |
Investor update | Q1 2025
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Base pay defined as annualized salary expense (excl. benefits and bonuses) based on headcount in the corresponding period.
FTE reduction is net of 220 financial service centre insourcing.
Q1 business performance
Good Coatings performance; Deco softer in Q1 (robust '24 comps + rebalancing)
AkzoNobel
Q1 revenue development % YoY
Organic sales:
flat
2 | (1) | (1) | |
- | - | ||
(2) |
Volumes Price/ M&A | FX Other Revenue |
mix |
Q1'24 | Q1'25 | |
Revenue (€m) | 2,640 | 2,613 |
Adj. EBITDA (€m) | 363 | 357 |
Adj. EBITDA margin (%) | 13.8 | 13.7 |
Deco
Q1 revenue development % YoY
Organic sales:
-1%
- | - | ||||||||||
(3) | (2) | ||||||||||
2 | (1) | ||||||||||
Volumes Price/ M&A | FX | Other Revenue | |||||||||
mix | |||||||||||
Q1'24 | Q1'25 | ||||||||||
Revenue (€m) | 1,056 | 1,030 | |||||||||
Adj. EBITDA (€m) | 156 | 147 | |||||||||
Adj. EBITDA margin (%) | 14.8 | 14.3 |
Coatings
Q1 revenue development % YoY
Organic sales:
+1%
2 | - | (1) | - | - | ||||||
(1) | ||||||||||
Volumes Price/ M&A FX | Other Revenue | |||||||||
mix | ||||||||||
Q1'24 | Q1'25 | |||||||||
Revenue (€m) | 1,584 | 1,583 | ||||||||
Adj. EBITDA (€m) | 221 | 231 | ||||||||
Adj. EBITDA margin (%) | 14.0 | 14.6 |
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Investor update | Q1 2025
Operating results for Q1 2025
Underlying FCF rebound; adj. leverage at 2.8x on seasonality
Return on investment (%)
13.8% | 13.1% |
Q1'24 | Q1'25 |
Operating WC (% rev)
18.0% | 18.0% |
Q1'24 | Q1'25 |
FCF (€m)
Identified items cash out | |
(211) | (183) |
(132) | |
(199) | |
(51) | |
Q1'24 | Q1'25 |
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Investor update | Q1 2025 Leverage ratio is based on adj. EBITDA.
Outlook
Q2 visibility impacted by macro + FX translation; FY underpinned by pricing and savings
FY2025 Outlook
Adj. EBITDA | • Gross savings: +€170m |
• Identified items / cash out: ~€220m | |
above €1.55 billion | |
• CAPEX: €350m | |
Volumes | • Net Debt/adj. EBITDA: below 2.5x |
Flat to +LSD% | • Net Debt/EBITDA: below 2.9x |
• Stable dividend | |
Outlook represents company expectations based on organic volumes, | |
subject to ongoing market uncertainties and assuming constant currencies. | |
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Investor update | Q1 2025
AkzoNobel Media Relations T +31 (0)88 - 969 7833 Contact: Joost Ruempolmedia.relations@akzonobel.com
AkzoNobel Investor Relations
T +31 (0)88 - 969 0139
Contact: Kenny Chae
investor.relations@akzonobel.com
Alternative performance measures (APM)
Upcoming events
Annual General Meeting of shareholders | April 25 |
Ex-dividend date of 2024 final dividend | April 29 |
Record date of 2024 final dividend | April 30 |
Payment date of 2024 final dividend | May 7 |
Q2 results | July 22 |
AkzoNobel uses APM adjustments to the IFRS measures to provide supplementary information on the reporting of the underlying developments of the business. A reconciliation of the alternative performance measures to the most directly comparable IFRS measures can be found in the appendix to this presentation. This Investor Update covers the highlights for the quarter. We recommend to read the Investor Update in combination with the AkzoNobel Q1 2025 Report. The Q1 2025 Report provides additional information, including the IAS34 condensed consolidated financial statements.
All figures in this presentation and in the AkzoNobel Q1 2025 Report are unaudited. The interim condensed consolidated financial statements were discussed and approved by the Board of Management and the Supervisory Board.
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Investor update | Q1 2025
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Akzo Nobel NV published this content on April 23, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 23, 2025 at 05:07 UTC.
