Revenue for Q2 is 26% higher than Q2 2020, mainly due to strong end market demand and a 4.5% price increase, while adjusted operating income was €335 million 41% higher than Q2 2020. The €1 billion share buyback commenced on 27 April 2021 with €223 million completed at end of Q2. The acquisition of Colombia-based Grupo Orbis is expected to be completed by end of 2021 or early 2022.
Thierry Vanlancker, CEO commented: “We’re very proud of our teams for delivering another strong quarter, including top line growth, despite the significant raw material headwinds impacting our industry. In view of the ongoing raw material inflation, we continue to take firm and necessary actions on pricing initiatives and maintaining our cost discipline, while remaining focused on serving our customers. Our People. Planet. Paint. approach to sustainability has again been recognized with the highest possible ESG rating (AAA) from MSCI for the sixth consecutive year, making us the frontrunner in paints and coatings.”
Vanlanker highlighted the following achievements:
- A deal has been agreed to acquire Colombia-based Grupo Orbis that will further expand our position in South and Central America. The deal will establish us as a frontrunner in the Andean region and in Central America, where several countries are high on the global growth rankings for the next decade.
- Our Yacht Coatings business has partnered with the Water Revolution Foundation to help create a more sustainable yacht industry and protect the world’s oceans. Having already made a long-term commitment to bring positive change to the industry, the business will share its expert knowledge and insight, which has been acquired over many decades of developing pioneering solutions for customers around the world.
- Two major projects to install around 8,000 solar panels are being finalised in China, helping us to accelerate our ambition of cutting carbon emissions in half by 2030.
- Our innovative Paint the Future startup challenge is continuing to attract interest from around the world, and we received more than 200 submissions for our second global edition – which was launched in May – with a follow-up bootcamp event scheduled for November.
- We recently received the highest possible ESG rating (AAA) from MSCI for the sixth consecutive year. Designed to measure resilience to long-term industry risks, the rating identifies how well we manage those risks and how we’re doing against our peers.
AkzoNobel targets to grow at least in line with its relevant markets. Trends differ per region and segment with significant raw material inflation expected to continue in the second half of 2021. Margin management and cost discipline are in place to deliver an average annual 50 basis points increase in return on sales over the period 2021-2023. The company targets a leverage ratio of 1-2 times net debt/EBITDA and commits to retain a strong investment grade credit rating.