Decorative Paints

Full-year:

  • Revenue up 2% (up 4% excluding currency impact), driven by strong volume growth, partly offset by adverse currencies and price/mix
  • Volumes up 7% overall, with growth in all regions
  • EBIT 2% lower, due to adverse currency effects and steep increases in raw material costs, partly offset by continuous improvement and cost control
  • ROS at 9.0% (2016: 9.3%); ROI at 12.5% (2016: 12.8%)

Q4:

  • Revenue up 3% (up 7% excluding currency impact). Strong volume growth was partly offset by currency and price/mix effects
  • Volumes increased 12% due to positive developments in all regions
  • EBIT up 14%, driven by volume growth, increased selling prices, continuous improvement and cost discipline, partly offset by adverse currencies and higher raw material costs
  • ROS increased to 6.3% (2016: 5.7%)

Dulux voted healthiest brand in the United Kingdom (Photo)

Dulux voted healthiest brand in the UK
Our Dulux brand was voted the healthiest brand in the UK. According to the BrandZ Top 50 UK report, there are five areas that make a brand stronger. If a brand is thought to be making people’s lives better, it has purpose. If that purpose is then underlined by innovation strategy, which supports why the brand is making people’s lives better, it is in a much stronger position. Communications, brand experience and love also enable a brand to sustain itself until the next innovation comes along.

Full-year:

Revenue was up 2% (up 4% excluding currency impact), driven by strong volume growth, partly offset by adverse currencies and price/mix. Volumes were up 7% overall, with growth in all regions.

EBIT was 2% lower, due to adverse currency effects and steep increases in raw material costs, partly offset by continuous improvement and cost control. Operating income was negatively impacted by identified items.

Q4:

Revenue was up 3% (up 7% excluding currency impact). Strong volume growth was partly offset by currency and price/mix effects. Positive developments continued, especially in China, and growth improved in Latin America as well as other regions.

EBIT was up 14%, driven by volume growth, increased selling prices, continuous improvement and cost discipline, partly offset by adverse currencies and higher raw material costs.

Operating income was negatively impacted by identified items, related to creating a focused high-performing Paints and Coatings organization.

Revenue

Fourth quarter

 

January-December

2016

2017

∆%

in € millions

2016

2017

∆%

*

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

438

443

1

Decorative Paints Europe, Middle East and Africa

2,160

2,095

(3)

145

154

6

Decorative Paints Latin America

484

520

7

316

328

4

Decorative Paints Asia

1,196

1,289

8

(1)

(2)

 

Other/intragroup eliminations

(5)

(6)

 

898

923

3

Total

3,835

3,898

2

 

 

 

 

 

 

 

51

58

14

EBIT

357

351

(2)

51

41

(20)

Operating income

366

334

(9)

5.7

6.3

 

ROS% *

9.3

9.0

 

 

 

 

 

 

 

 

 

 

 

Average invested capital

2,783

2,803

 

 

 

 

ROI (in %) *

12.8

12.5

 

 

 

 

 

 

 

 

46

41

 

Capital expenditures

107

112

 

 

 

 

Number of employees

14,700

14,400

 

Revenue development 2017

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

Revenue development Q4 2017

Decorative Paints – Revenue development Q4 2017 (bar chart)Decorative Paints – Revenue development Q4 2017 (bar chart)

Europe, Middle East and Africa

Full-year volumes were up, while revenue was 3% lower (1% lower excluding currency impact), mainly due to unfavorable currencies and price/mix. There were positive developments in most parts of continental Europe and Africa, while the UK was affected by lower consumer confidence. Adverse currency effects were mostly related to the pound sterling.

In Q4, revenue was up 1% (up 3% excluding currency impact), mainly due to higher volumes, partly offset by adverse price/mix and currency effects. Demand trends differed per country in the region and uncertainty continued in some markets, including the UK. Growth was visible in most European countries. New product launches, as well as our revolutionary color testers, helped sales growth in continental Europe.

Latin America

Revenue was up 7%, mainly due to higher volumes across the region. Cost control measures and productivity improvement programs were also implemented during the year.

In Q4, revenue was up 6% (up 14% excluding currency impact), driven by higher volumes and partly offset by adverse currencies. Growth continued due to more extensive distribution, while new product launches resulted in higher volumes.

Asia

Positive demand trends continued in Asia and revenue was up 8%, driven by strong growth in China. Volume growth was partly offset by adverse currencies and price/mix effects. Significant growth was realized in both the premium and mass market segments. Vietnam and Indonesia continued to deliver good revenue growth.

In Q4, revenue increased 4% (up 9% excluding currency impact). Strong volume growth was partly offset by adverse price/mix and currencies. Price/mix effect was impacted by significant growth in the mass market, in addition to the premium segment. Adverse currency effects were visible for most Asian currencies, with the majority coming from the Chinese yuan.