Q3 2024 Akzo Nobel NV Earnings Call Transcript
Key Points
- Akzo Nobel NV (AKZOF) reported its fourth consecutive quarter of volume growth, with a 1% increase in Q3 2024.
- The company achieved an adjusted gross margin expansion of 60 basis points in Q3 and 180 basis points year-to-date.
- Akzo Nobel NV (AKZOF) is implementing cost measures, including a reduction of 2,000 positions globally, expected to deliver annualized savings of EUR120 million to EUR150 million.
- The company is focusing on strategic portfolio management, particularly in South Asia, to enhance its market position.
- Despite challenging market conditions, Akzo Nobel NV (AKZOF) maintained pricing discipline, with price mix remaining flat in Q3.
- Adjusted EBITDA growth was impacted by higher-than-expected adverse currency effects.
- Net debt-to-EBITDA ratio increased to 3 times from the prior quarter due to elevated working capital.
- The decorative paints market in China remains weak, affecting overall sales performance.
- Working capital as a percentage of revenue stood at 17.7%, higher than the company's target.
- The automotive market showed a clear slowdown, impacting volumes in the automotive and specialty coatings segment.
Good morning, and welcome to Akzo Nobel's Investor Update for the third quarter of 2024. I'm Kenny Chae, Head of Investor Relations. Today, our CEO, Greg Poux-Guillaume; and CFO, Maarten de Vries, will take you through our results. We'll refer to the presentation, which you can follow by webcast or download from our website at akzonobel.com.
A replay of the webcast will also be made available following the event. There will be a Q&A session after the presentation. For additional information, please contact our Investor Relations team. Before we start, a reminder of our forward-looking statements disclaimer on Slide 2. Please note, this also applies to the conference call and answers to your questions. I will now hand over to Greg, who will start on slide 3 of the presentation.
Thanks, Kenny. Good morning to everyone on the call. Apologies for my voice, I need to trade in
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
