Dutch paints and coatings maker Akzo Nobel beat first-quarter operating profit expectations today - supported by strong pricing and higher-than-expected volumes.
The maker of Dulux and Flexa paints reported adjusted operating income of €218m in the first quarter of 2023.
This was down 5% from a year earlier but above the €193m expected by analysts in a company-provided consensus.
"We delivered higher volumes than expected with healthy pricing dynamics, leading to further margin expansion," CEO Grégoire Poux-Guillaume said in a statement.
The results echoed US rival PPG Industries that last week exceeded profit expectations and forecast better-than-expected 2023 earnings driven by higher prices and sales volumes.
The Amsterdam-based group said it expected declining raw material costs to have a favourable impact on profitability and cost reduction programmes to mitigate the pressure from inflation on operating expenses this year.
Akzo reiterated its February outlook for adjusted core earnings (EBITDA) of between €1.2 billion and €1.5 billion in 2023.
