AkzoNobel struggles with reduced paint demand and lower profits

The logo of chemical company AkzoNobel on the Zuidas in Amsterdam.Image ANP

In the same period last year, the result still amounted to 241 million euros. “The high macroeconomic uncertainty, especially in Europe and China, is driving consumer confidence to an almost historic low,” said a spokesperson. ‘This leads to reduced demand.’

Distributors and retail chains selling paint from the Dutch company are mainly busy running out of stock before stocking up on new cans from brands such as Flexa or Sikkens. AkzoNobel is also experiencing the consequences of inflation in other areas, as raw materials have become considerably more expensive. By raising prices, the group has been able to absorb these blows.

Weak question

AkzoNobel also expects weak demand for its paint in the last three months of 2022. The company is therefore implementing cost savings. “The company has several programs underway to improve efficiency within the organization in order to reduce costs,” the spokesperson said. AkzoNobel is also looking at the option of not filling vacancies after natural attrition.

The management expects that the demand for paint will also be low in the coming months. AkzoNobel will continue to raise prices and reduce costs. The profit warning immediately resulted in a lower share on the Amsterdam stock exchange. AkzoNobel was at the bottom of the AEX on Tuesday morning with a loss of 1.7 percent. Later, the share climbed slightly to -1.3 percent.

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