Akzo Nobel Transforming Akzo, one brushstroke at a time
After lacklustre earnings growth in the recent past (2% adj EBITDA CAGR between 2019-2024), Akzo is now focusing on a combination of self-help measures and portfolio adjustment. On the back of the targeted (minimum) remaining gross savings of € 405m by 2027, management aims to grow adjusted EBITDA margins by 220bps over the next few years to 16%, whilst KBCS and consensus estimates are more cautious at respectively 15.3% and 15.6% by 2027. The targeted portfolio streamlining, with an overall focus on Coatings, is expected to result in a divestment of the Indian deco Paints business (expected proceeds in excess of € 1bn), whilst the proceeds will probably be used for further deleveraging in combination with share buybacks. Taking into account the low structural growth and bumpy track record, we maintain our Hold rating with TP being revised from € 70 to € 65.Akzo Nobel N.V. is a holding company. Through its subsidiaries, Co. is engaged in the production and marketing of paints, coatings and specialty chemicals. Co. has three segments: Decorative Paints, which supplies products for the professional and do-it-yourself markets, including paints, lacquers and varnishes, as well as products for surface preparation; Performance Coatings, which is divided into the following businesses: Automotive and Aerospace Coatings, Industrial Coatings, Marine and Protective Coatings, and Powder Coatings; and Specialty Chemicals, which are used in products such as ice cream, soups, disinfectants, plastics, soaps, detergents, cosmetics, paper and asphalt.
We are a financial services provider for several types of professional clients, each with distinct needs.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.