Decorative Paints

  • Revenue increased 7%, mainly driven by strong volume growth
  • Volumes up 9%, positive in all regions
  • EBIT increased 48% driven by higher revenue and continued focus on cost measures
  • ROS increased to 8.4% (2016: 6.0%); ROI increased to 13.8% (2016: 12.0%)
Four people on ladders painting a wall (Photo)

Communities in more than 40 countries will benefit from a partnership between AkzoNobel and peace movement MasterPeace to color 100 “Walls of Connection”.

Revenue was up 7%, mainly driven by strong volume growth. Positive volume developments and currency effect was partly offset by adverse price/mix. Volumes were up 9%, with volume growth in all regions and realized consistently throughout the quarter. Volume developments were positive for the sixth consecutive quarter.

EBIT increased by 48%, mainly as a result of higher revenue and continued focus on cost measures, while recognizing Q1 is a seasonally smaller quarter.

Revenue

First quarter

 

 

 

in € millions

2016

2017

∆%

*

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

Decorative Paints Europe, Middle East and Africa

512

507

(1)

Decorative Paints Latin America

101

119

18

Decorative Paints Asia

249

297

19

Other/intragroup eliminations

(1)

(1)

 

Total

861

922

7

 

 

 

 

EBIT

52

77

48

Operating income

52

77

48

ROS% *

6.0

8.4

 

 

 

 

 

Average invested capital

2,899

2,775

 

Moving average ROI (in %) *

12.0

13.8

 

 

 

 

 

Capital expenditures

26

18

 

Number of employees

14,900

14,700

 

Revenue development Q1 2017

Decorative Paints – Revenue development Q1 2017 (bar chart)Decorative Paints – Revenue development Q1 2017 (bar chart)

Europe, Middle East and Africa

Volumes were up in continental Europe, with further roll out of easy care and the launch of Sikkens alpha rezisto (an extremely stain repellent wall paint), as well as in emerging countries. Unfavorable currencies, including the pound sterling, and price/mix effects resulted in 1% revenue decrease. Revenue was up 2% excluding currency effects. Positive developments continued in the UK, the Netherlands, Russia and Africa. Productivity programs continued to deliver accelerated savings.

Latin America

Revenue was up 18% driven by positive currencies (up 2% excluding currency effects) as well as higher volumes. While some markets showed signs of slight recovery, volume and revenue improvements were visible with the roll out of easy care. Cost control remains a focus area in the region.

Asia

Asian markets continued to show positive demand trends throughout the first quarter. Revenue increased by 19%. Strong volume growth and favorable currency effects more than offset adverse price/mix effects. Volume growth accelerated in China, in particular in the premium and mass segments. Vietnam and India also showed strong growth.