Akzo Nobel, the maker of Dulux paint, reported a slight drop in its first-quarter core profit but still managed to beat analyst expectations. The Dutch company cited cost-cutting efforts and higher prices as key factors in offsetting weak markets and inflation.
The company posted adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of €357 million ($406.7 million). This was a 1.7% decrease from €363 million in the same period last year. However, it surpassed analysts’ expectations of €345 million, according to a consensus compiled by Vara and shared by the company.
“Our efficiency measures are paying off, allowing us to compensate for softer markets and persistent inflation,” said CEO Greg Poux-Guillaume in a statement.
Akzo Nobel, which produces both decorative paints and specialized coatings, also addressed the ongoing U.S.-China trade tensions. The company estimates an annualized EBITDA impact of €35 million due to tariffs — with €25 million from U.S. exports and €10 million from U.S. imports.
Despite this, Poux-Guillaume emphasized that Akzo’s strategy of sourcing and producing locally helps reduce the effects of such trade issues. “Our local-for-local and procurement derisking strategic principles continue to largely shield us from direct impacts on our cost base or our ability to deliver,” he said.
Revenue for the first quarter came in at €2.61 billion, down 1% year-on-year. While slightly below last year’s figure, it still exceeded the €2.64 billion expected by analysts in the company’s consensus.
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