Strategic planning: AkzoNobel adjusts its prices to counter the transport crisis and records a 19% increase in revenue

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Amsterdam, Netherlands – AkzoNobel released its third-quarter 2022 financial results, reporting strong revenue gains driven by price increases outpacing expected losses from lower volumes, rising material costs and global inflation.

Specifically, the company increased revenue by 19% by raising prices by 13%, justified as a way to offset increases in raw material expenses and other variable costs.

Additionally, volume was reduced by 5% due to weaker decoration and performance demand in Europe and weaker market demand in China. Ultimately, the company recorded a return on sales of 6.4%, which AkzoNobel says comes “from lower volumes and higher raw material and freight costs, as well as operating expense inflation.

Reported income, figures not adjusted for inflation. (Media Relations Department/AkzoNobel)

“Thanks to the strong commitment of our teams, we continue to offset the impact of inflation in raw material and freight costs through prices. We have now achieved cumulative awards of 22% over the past two years,” said Thierry Vanlancker, CEO of AkzoNobel.

“Our adjusted operating profit of €201 million excluding the retrospective impact of the recognition of hyperinflation aligns our third quarter results with the market update published at the end of September. The sharply increased macroeconomic uncertainties had a negative impact on the consumer confidence.

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