April 21, 2024

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Akzo Nobel suspends 2023 outlook due to macroeconomic headwinds

Akzo Nobel suspends 2023 outlook due to macroeconomic headwinds

Akzo Nobel CEO says 2023 outlook suspended due to macroeconomic and geopolitical pressures

Dutch paints and coatings maker Akzo Nobel has suspended its 2023 core profit outlook, citing macroeconomic turbulence which is negatively affecting consumer confidence.

“This resulted in destocking across several distribution channels in decorative paints in Europe and performance coatings, while the market in China was impacted by the ongoing zero COVID-19 policy,” chief executive Thierry Vanlancker said in a statement on Thursday.

The Amsterdam-based group, which makes the Dulux and Flexa paints and supplies to sectors ranging from aerospace to yachts, said several markets are expected to experience disruptions.

Akzo Nobel, which had previously forecast to reach earnings before interest, taxes, depreciation and amortisation (EBITDA) of 2 billion euros ($1.96 billion) in 2023, said it would provide further guidance when it announces full-year results.

The company posted a third-quarter adjusted operating income excluding the retrospective impact of hyperinflation accounting at 201 million euros, within the 195-215 million euros range it had guided for in September. Analysts in a Vara Research poll had on average estimated it to come in at 195.8 million euros.