Latest news with #AkzoNobel
Business Recorder
19 hours ago
- Business
- Business Recorder
AkzoNobel expands Karachi footprint
KARACHI: AkzoNobel Pakistan, a global leader in decorative paints and coatings, has entered into a strategic distribution agreement with Premier Sales Pvt Ltd, one of Pakistan's most reputable retail distribution networks. This partnership marks a key step in strengthening AkzoNobel's footprint across Karachi by leveraging Premier's extensive retail reach and operational expertise. Under the terms of the agreement, Premier Sales Pvt Ltd will manage the distribution of AkzoNobel's decorative paints portfolio— including its flagship Dulux range—across designated areas of Karachi. This collaboration is set to fast-track product availability, elevate service levels, and significantly enhance customer engagement in this key metropolitan region. Copyright Business Recorder, 2025
Yahoo
7 days ago
- Business
- Yahoo
Akzo Nobel NV (AKZOF) Q2 2025 Earnings Call Highlights: Strategic Moves and Margin Expansion ...
Gross Margin: Increased by 40 basis points year-on-year. EBITDA Margin: Expanded by 60 basis points to 15%. Free Cash Flow: Generated EUR162 million in the quarter. Organic Sales: Flat for the quarter. Volume Change: Declined by 1% year-on-year. Price/Mix Impact: Pricing up 2%, offset by a negative 1% mix impact. Adjusted EBITDA: EUR393 million, or EUR417 million adjusted for ForEx. ForEx Impact: 5% negative impact on revenue. Net OpEx Savings: EUR35 million year-on-year. Adjusted Leverage Ratio: Stands at 2.9 times. Return on Investment: 13.2%, lower year-on-year. Operating Working Capital: Improved to 17% of revenue. Sale of Indian Businesses: Sold for EUR1.4 billion at 25 times 2025 EBITDA. Site Closures: Announced five additional site closures in the first half of 2025. Warning! GuruFocus has detected 10 Warning Signs with AKZOF. Release Date: July 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Akzo Nobel NV (AKZOF) achieved a 60 basis point increase in EBITDA margin to 15%, reflecting pricing discipline and structural benefits from SG&A and industrial programs. The company generated EUR162 million of free cash flow in the quarter despite EUR49 million of cash-out related to restructuring. Akzo Nobel NV (AKZOF) successfully sold most of its Indian businesses at 25 times 2025 EBITDA for EUR1.4 billion, while maintaining a royalty stream for Coatings. The SG&A program announced last year is fully implemented, delivering over EUR150 million of recurring savings, with potential for further efficiency improvements. The company is on track to reduce leverage to around 2.3 times by year-end, reflecting current ForEx rates and expected deleveraging proceeds from India. Negative Points Volumes declined by 1% year-on-year, primarily due to continued softness in the North American Coatings markets. Foreign exchange rates posed a significant headwind, with a 5% negative impact on revenue, resulting in a total revenue decline of 6%. The Turkish deco market has slowed down significantly, with volumes down double digits, impacting the company's performance in the region. North American refinish demand remains soft, with consumers delaying car repairs due to increased insurance premiums and reduced disposable income. The automotive market remains complicated, with ongoing challenges in the Powder Coatings segment due to tariff uncertainties. Q & A Highlights Q: Can you unpack the next steps in your strategic review and M&A, especially in light of recent reports about interest in BASF Coatings? A: We are focused on disposals rather than acquisitions. The sale of Akzo Nobel India was a first step in our strategic review, and we are assessing other businesses where we are not market leaders. Regarding BASF, we are not committed to their main process as they seek a cash transaction, which we are not pursuing. Q: How is the North American market developing, and what are your assumptions for the second half of the year? A: The North American market remains weak due to customer uncertainty, partly driven by tariff discussions. We do not expect a change in dynamics for Q3, with Protective being the only segment showing strong growth. Q: Can you describe the main moving parts on mix that impacted the quarter and your expectations for the rest of the year? A: The mix was mainly driven by a strong rebound in China Deco and weakness in North America. We expect a similar negative mix impact in Q3 due to these factors. Q: How is your raw materials basket shaping up for the second half of the year, and how are competitors behaving in terms of pricing? A: Our raw material basket is improving and is expected to be flat for the year. Pricing has been positive, with a 2% increase in Q1 and Q2, despite competitive pressures, particularly in Coatings. Q: Can you elaborate on the impact of service levels (OTIF) on financial performance? A: OTIF is an enabler of industrial health, translating into lower costs over time. It ensures efficient operations and customer service, which supports volume resilience and cost management. Q: What gives you confidence in your second-half guidance, given seasonality and FX headwinds? A: We expect margin expansion due to a softening raw material environment and benefits from operational actions. SG&A savings and industrial excellence actions will also contribute positively. Q: Can you explain the royalty streams following the divestment of the Indian business? A: We will collect a 4.5% licensing fee on Coatings sales in India, as we continue to provide technology and innovation to JSW Group, ensuring Akzo products remain available globally. Q: How is the Western Europe Deco business performing, and what are the drivers? A: Western Europe Deco has returned to growth, driven by improved weather and a pickup in the professional segment, particularly in the UK and Benelux, where we have strong market positions. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Zawya
22-07-2025
- Business
- Zawya
Shares slip as investors look to earnings, tariff talks
LONDON - European shares fell on Tuesday, hit by mixed corporate earnings and anxiety over tariff negotiations between the U.S. and its trading partners, while the euro held steady. The Euro STOXX 600 index extended losses during morning trading and was last down 0.6%, with bourses in Germany and France losing 1.1% and 0.8% respectively. Among the big decliners were chemical stocks which shed 2% as Dulux paint maker Akzo Nobel lost 5.4% after lowering its core profit outlook for 2025. Earnings from firms including SAP and UniCredit were also in focus. Investors were also following tariff talks ahead of Washington's August 1 deadline, with the European Union exploring a broader set of possible countermeasures against the U.S. as hopes for an acceptable agreement fade. The euro was steady at $1.1689 after rising 0.5% on Monday, though still away from the near four-year high hit at the start of the month. The single currency is up 13% this year as investors looked for alternatives to U.S. assets bruised by tariff uncertainties. Its performance is closely monitored for its impact on profits in the euro zone's export-reliant economy. "The euro's ability to maintain preference over the dollar amid tariff tensions will depend on the extent of any escalation and whether the EU emerges as a relative loser while other countries secure significant deals with the U.S.," ING analysts wrote in a note to clients. Wall Street futures were marginally down. The benchmark S&P 500 and the Nasdaq closed at record highs on Monday. Investors await results this week from Wall Street giants Alphabet and Tesla, as well as European heavyweights LVMH and Roche, as uncertainty over tariffs clouds the outlook. Earlier, Asian share markets drifted lower after scaling a near four-year peak. MSCI's broadest index of Asia-Pacific shares outside Japan hit its highest since October 2021 but finished down 0.4%. The index is up nearly 16% this year. Japanese markets returned after a holiday on Monday following the weekend's election where the ruling coalition suffered a defeat in upper house elections, although Prime Minister Shigeru Ishiba vowed to remain in his post. The yen rallied 1% on Monday, recouping some of the losses from past weeks and was flat at 147.43 per dollar. FED INDEPENDENCE The dollar index, which gauges the unit against six other key currencies, was also flat at 97.849. Rumblings around the Federal Reserve's independence and whether U.S. President Donald Trump will fire Fed Chair Jerome Powell have kept investors on tenterhooks in recent weeks. U.S. Treasury Secretary Scott Bessent said on Monday the entire Federal Reserve needed to be examined as an institution and whether it had been successful. The Fed is widely expected to hold rates steady in its July meeting but might lower rates later in the year. Market focus will be squarely on Powell's impending speech on Tuesday for clues about when the Fed might ease policy. Brent crude futures fell 0.9% to $68.56 a barrel, while U.S. West Texas Intermediate crude slipped by the same amount to $66.59 per barrel. (Reporting by Tom Wilson in London and Ankur Banerjee in Singapore. Editing by Mark Potter and Bernadette Baum)
CNA
22-07-2025
- Business
- CNA
Shares slip as investors look to earnings, tariff talks
LONDON :European shares fell on Tuesday, hit by mixed corporate earnings and anxiety over tariff negotiations between the U.S. and its trading partners, while the euro held steady. The Euro STOXX 600 index extended losses during morning trading and was last down 0.6 per cent, with bourses in Germany and France losing 1.1 per cent and 0.8 per cent respectively. Among the big decliners were chemical stocks which shed 2 per cent as Dulux paint maker Akzo Nobel lost 5.4 per cent after lowering its core profit outlook for 2025. Earnings from firms including SAP and UniCredit were also in focus. Investors were also following tariff talks ahead of Washington's August 1 deadline, with the European Union exploring a broader set of possible countermeasures against the U.S. as hopes for an acceptable agreement fade. The euro was steady at $1.1689 after rising 0.5 per cent on Monday, though still away from the near four-year high hit at the start of the month. The single currency is up 13 per cent this year as investors looked for alternatives to U.S. assets bruised by tariff uncertainties. Its performance is closely monitored for its impact on profits in the euro zone's export-reliant economy. "The euro's ability to maintain preference over the dollar amid tariff tensions will depend on the extent of any escalation and whether the EU emerges as a relative loser while other countries secure significant deals with the U.S.," ING analysts wrote in a note to clients. Wall Street futures were marginally down. The benchmark S&P 500 and the Nasdaq closed at record highs on Monday. [.N] Investors await results this week from Wall Street giants Alphabet and Tesla, as well as European heavyweights LVMH and Roche, as uncertainty over tariffs clouds the outlook. Earlier, Asian share markets drifted lower after scaling a near four-year peak. MSCI's broadest index of Asia-Pacific shares outside Japan hit its highest since October 2021 but finished down 0.4 per cent. The index is up nearly 16 per cent this year. Japanese markets returned after a holiday on Monday following the weekend's election where the ruling coalition suffered a defeat in upper house elections, although Prime Minister Shigeru Ishiba vowed to remain in his post. The yen rallied 1 per cent on Monday, recouping some of the losses from past weeks and was flat at 147.43 per dollar. FED INDEPENDENCE The dollar index, which gauges the unit against six other key currencies, was also flat at 97.849. Rumblings around the Federal Reserve's independence and whether U.S. President Donald Trump will fire Fed Chair Jerome Powell have kept investors on tenterhooks in recent weeks. U.S. Treasury Secretary Scott Bessent said on Monday the entire Federal Reserve needed to be examined as an institution and whether it had been successful. The Fed is widely expected to hold rates steady in its July meeting but might lower rates later in the year. Market focus will be squarely on Powell's impending speech on Tuesday for clues about when the Fed might ease policy. Brent crude futures fell 0.9 per cent to $68.56 a barrel, while U.S. West Texas Intermediate crude slipped by the same amount to $66.59 per barrel.
CNA
22-07-2025
- Business
- CNA
Akzo Nobel eyes decorative paint disposals in Asia after $1.6 billion India unit sale
Dulux paints maker Akzo Nobel plans to focus on its business-to-business offering in Asia during the next phase of its portfolio review, after the $1.6 billion sale of its India unit in June, its chief executive said on Tuesday. It will do this by increasing investments in coatings while selling off some decorative paints units in the region, CEO Greg Poux-Guillaume told Reuters. Performance coatings made up 62 per cent of the group's adjusted core earnings in 2024. "Our aim is to be a market leader in everything that we do, and wherever we're not, we have to reassess," Poux-Guillaume said. Akzo Nobel, which sells decorative paints to consumers and professionals and specialised coatings used by many industries, had launched the first phase of the review in South Asia in October 2024. At the time, it called the region "ripe for consolidation" and said it would explore options including partnerships, joint ventures, mergers and divestitures. It now intends to apply the strategic framework used in India to other businesses and assets across Asia, with a focus on disposals rather than acquisitions, Poux-Guillaume told analysts in a post-earnings call. Asked about a recent Bloomberg News report that Akzo Nobel was considering the acquisition of BASF's coatings arm, he said it had not committed to any such process. "We don't have the balance sheet for it ... and also we don't need the distraction at this point," Poux-Guillaume said. "BASF is looking for a cash transaction, and this is not something that we'll do." The sale of Akzo Nobel's liquid coatings business in India to JSW included a clause that it would retain the Dulux intellectual property and continue as the product's technology provider in the country, receiving a royalty of 4.5 per cent of sales. Poux-Guillaume said future disposals were unlikely to include such agreements, as the entities under consideration were wholly owned by Akzo Nobel and not publicly listed.
