Amsterdam, Netherlands — AkzoNobel has released its Q3 2022 financial results, reporting strong revenue gains thanks to price hikes outpacing expected losses from lower volume, higher material costs and global inflation.
Specifically, the company has increased its revenue by 19 percent by increasing prices by 13 percent, justified as a way to offset increases in raw material expenses and other variable costs.
Additionally, volume was lowered by 5 percent due to weaker demand for decorative and performance coatings in Europe and lower market demand in China. Ultimately, the company saw returns on sales of 6.4 percent, which AkzoNobel says comes “from lower volumes and higher raw material and freight costs, as well as inflation on operating expenses.”
“Thanks to the strong commitment of our teams, we continue to offset the impact of raw material and freight cost inflation with pricing. We’ve now delivered cumulative pricing of 22 percent over the last two years,” said Thierry Vanlancker, CEO of AkzoNobel.
“Our €201 million adjusted operating income excluding the retrospective impact of hyperinflation accounting bring our Q3 results in line with the market update issued at the end of September. Sharply increased macro-economic uncertainties negatively impacted consumer confidence.”
