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Decorative Paints – Overview


  • Revenue increased 4 percent and EBITDA decreased 7 percent
  • Continued momentum in high-growth markets
  • Demand in mature markets declined in the quarter
  • Further price increases are being implemented to compensate for higher raw material costs
  • Weaker performance in Europe was the main driver of the lower EBITDA result

The Decorative Paints business in the second quarter showed a revenue increase of 4 percent (8 percent on a constant currency basis). Revenue increased across all regions with the most growth in the high-growth markets. The impact of increased prices was 4 percent before an adverse mix impact of 2 percent. Our growth strategy of investing in brands, distribution and people, as well as expanding into mid-tier markets in high-growth regions, is progressing well. However, demand in most of the mature markets declined in the second quarter. Due to the increased raw material prices and unfavorable mix effects, our margin decreased versus the previous year. EBITDA was down 7 percent for the quarter, with a negative currency impact of 2 percent. The EBITDA margin in the second quarter is in line with the normal seasonal pattern but is lower compared to the previous year, which is mainly caused by weaker performance in Europe.

Revenue development Q2 2011

Decorative Paints – Revenue development Q2 2011 (bar chart)
Decorative Paints – Key brands (logos)
Copyright © 2011 Akzo Nobel N.V.