The Decorative Paints business got off to a good start in 2011 with revenue up 13 percent (including a favorable currency effect of 3 percent). Revenue increased across all regions. The impact of increased prices was 4 percent, before the mix effect of growth in the mid tier segment in the high growth markets. Our growth strategy of investing in brands, distribution and people, and expanding into mid-tier markets in high growth regions, is progressing well. Demand in most of the mature markets was stable in the first quarter. We continued to invest in the future of our business. Absolute A&P spending increased by 17 percent. In the US, approximately 3,500 Walmart retail locations have been reset.
Our margin management programs enabled us to maintain overall margins despite higher raw material prices. EBITDA was up 10 percent for the quarter, with a positive currency impact of 3 percent. The EBITDA margin in Q1 is in line with the normal seasonal pattern and is stable compared with the previous year.
Revenue development Q1 2011