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Decorative Paints – Overview


  • Revenue up 8 percent, with volumes up 1 percent
  • EBITDA at €205 million, up 20 percent
  • EBITDA margin 14.6 percent (2009: 13.2 percent)
  • Strong revenue growth and increased investment in brands and distribution in high growth markets
  • Soft demand in the mature markets, particularly in trade
  • Mature markets: improved results due to restructuring

The strong performance in the first quarter for Decorative Paints continued in the second quarter. EBITDA improved 20 percent to €205 million (in constant currencies: 13 percent). The strong EBITDA improvement is the result of revenue growth in the emerging markets, the realization of the ICI integration synergies, the implementation of additional restructuring projects and a global focus on margin management. Revenue development was in line with expectation and in line with investment priorities. Revenue grew by 8 percent (in constant currencies by 1 percent) with strong growth in Asia (38 percent) and negative growth in the US and large parts of Continental Europe.

The growth in the emerging market is a result of increased investment in our people, brands and distribution footprints. Total spend on advertising increased to 7 percent of revenue (2009: 5 percent).

Raw material shortages are experienced particular in North America during the quarter, which negatively impacted revenue and margins. While the global raw and packaging materials situation continues to be tight, we believe that our global scale and presence will be a competitive advantage in securing supply.

Revenue development Q2 2010

Decorative Paints – Revenue development Q2 2010 (bar chart)
Decorative Paints – Brands (logos)
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