Decorative Paints

Full-year:

  • Volumes were up driven by Asia and EMEA
  • Revenue down 4% mainly due to unfavorable currency effects
  • EBIT up 3% at €357 million, driven by volume growth, continuous improvement and cost discipline, partly offset by adverse currencies
  • ROS increased to 9.3% (2015: 8.6%); ROI increased to 12.8% (2015: 11.7%)

Full-year:

Volumes were up 3% overall with positive developments in Asia and EMEA, while volumes in Latin America were down. Revenue was down 4%, mainly due to unfavorable currency effects, in particular the pound sterling and currencies in Latin America.

EBIT increased by 3% due to volume growth, continuous improvement and cost discipline, partly offset by adverse currencies.

Q4:

Volumes were higher for another consecutive quarter, although continued to decline in Latin America. Positive developments in Asia were more than offset by unfavorable currency effects and adverse price/mix. Revenue was down 4%.

EBIT increased by 11%, mainly as a result of volume growth, continuous improvement and cost discipline.

Revenue

Fourth quarter

 

January-December

2015

2016

∆%

in € millions

2015

2016

∆%

*

ROS% = EBIT/Revenue. Moving average ROI (in %) = 12 months EBIT/12 months average invested capital

476

438

(8)

Decorative Paints Europe, Middle East and Africa

2,263

2,160

(5)

147

145

(1)

Decorative Paints Latin America

561

484

(14)

309

316

2

Decorative Paints Asia

1,185

1,196

1

(1)

(1)

 

Other/intragroup eliminations

(2)

(5)

 

931

898

(4)

Total

4,007

3,835

(4)

 

 

 

 

 

 

 

46

51

11

EBIT

345

357

3

46

51

11

Operating income

345

366

6

4.9

5.7

 

ROS% *

8.6

9.3

 

 

 

 

 

 

 

 

 

 

 

Average invested capital

2,959

2,783

 

 

 

 

Moving average ROI (in %) *

11.7

12.8

 

 

 

 

 

 

 

 

45

46

 

Capital expenditures

158

107

 

 

 

 

Number of employees

14,900

14,700

 

Revenue development full-year 2016

Performance Coatings – Revenue development Q3 2016 (bar chart)Performance Coatings – Revenue development Q3 2016 (bar chart)

Revenue development Q4 2016

Europe, Middle East and Africa

Full-year volumes were up, while revenue reduced 5% due to unfavorable currencies and price/mix effects. Volumes were higher overall and trends varied across the region, with positive developments, in particular in the UK, the Netherlands, Russia and Africa.

In Q4, revenue was down 8% mainly due to adverse currency effects. Demand trends differed per country in the region.

Currency volatility remained, including for the pound sterling, which was significantly down compared with 2015, particularly during the second half of the year.

Latin America

Challenging market conditions, due to economic instability and currency devaluation, continued throughout the year. Revenue reduced by 14% due to adverse currency effects and lower volumes, partly offset by positive price/mix.

In Q4, revenue was down 1%. Positive price/mix offset lower volumes, while adverse currency effects reduced compared with previous quarters. Improvement actions and cost control remained the focus in the region.

Asia

Asian markets showed positive demand trends throughout the year, while challenging conditions in the Chinese construction market continued. Revenue increased by 1%. Volumes were up for the region, with good momentum in India, Vietnam and Indonesia, and strong growth in China, which more than offset adverse currency and price/mix effects.

In Q4, revenue increased by 2%. Despite some impact on the Indian market due to demonetization, volume growth continued, which more than offset unfavorable currency and price/mix effects.

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AkzoNobel won the Dutch Best Product of the Year 2016-2017 award in the Paints category for its Flexa Color Tester. The mini roller help consumers test color choices before they buy.