In This Article:
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Q4 Adjusted EBITDA: EUR321 million, a 3% increase.
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Q4 Organic Sales Growth: 1% increase driven by price/mix.
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Full-Year Organic Sales Growth: 2% increase with a 1% volume rise.
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Full-Year Adjusted EBITDA: EUR1.5 billion, with a margin of 14.1%.
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Net Debt-to-EBITDA Ratio: 3 times, with an adjusted ratio of 2.6 times.
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Adjusted Gross Margin Expansion: 130 basis points increase.
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Q4 Revenue Growth: 4% increase, supported by favorable foreign exchange rates.
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Q4 Adjusted EBITDA Margin: 12.3%.
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Operating Working Capital: 15.7% of revenue, higher due to lower accounts payables.
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Q4 Free Cash Flow: EUR284 million.
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Return on Investment: Improved to 13.3% in 2024.
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Proposed Final Dividend: EUR1.54.
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2025 Adjusted EBITDA Target: More than EUR1.55 billion.
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SG&A Efficiency Targets: Over EUR150 million in annualized gross savings.
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Industrial Transformation Benefits: EUR300 million expected by 2027.
Release Date: January 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Akzo Nobel NV (AKZOF) increased adjusted EBITDA by 3% in Q4 2024, reaching EUR 321 million, aligning with consensus expectations.
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The company achieved full-year organic sales growth of 2%, supported by a 1% increase in volumes, and expanded its adjusted gross margin by 130 basis points.
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Efficiency measures are on track, with an expected total benefit of EUR 300 million by 2027, including EUR 200 million in cost savings and EUR 100 million in efficiency gains.
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Marine and Protective Coatings delivered double-digit volume growth, driven by technical newbuilds in marine, with expectations for mid-single-digit growth in 2025.
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The company is making strategic investments to enhance and modernize its anchor sites globally, contributing to operational efficiency and debottlenecking critical assets.
Negative Points
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Net debt-to-EBITDA ratio increased to 3 times, higher than the target, due to lower payables and accelerated restructuring activities.
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Q4 organic volume growth was flat, impacted by declines in Deco China, with expectations for continued softness in some segments in Q1 2025.
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The automotive and specialty volumes were slightly lower in Q4, with weak demand in automotive and vehicle refinishes.
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The company does not anticipate a significant market rebound in 2025, with flat to low single-digit growth expected.
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Restructuring costs will remain elevated through 2025, impacting cash flow and leverage ratios in the first half of the year.
Q & A Highlights
Q: Can you provide insights into your pricing strategy and cost inflation expectations for 2025? A: Maarten de Vries, CFO, explained that they anticipate a low single-digit inflation in raw materials and freight. They plan to offset this with price increases during Q1 and Q2. The net benefit from cost savings is expected to be EUR70 million, considering EUR170 million in gross savings and EUR100 million in inflation costs.