Dulux paint maker AkzoNobel has today reported a 7% jump in its first-quarter core profit, excluding activities of its recently sold India unit, carried by higher pricing and cost savings.
AkzoNobel sells branded products ranging from decorative paints to speciality coatings used on cargo ships and Formula 1 cars. This allows it to pass on price increases to customers more successfully than its commodity chemical counterparts.
"Our raw material basket is going to go up by something like the high teens (percentage), given the disruption of the Strait of Hormuz," a full effect of which will be seen in the next two quarters, CEO Greg Poux-Guillaume told Reuters.
The Dutch group, which had trimmed its outlook in February, stood by its 2026 core profit target of at least €1.47 billion, saying the impact from the Middle East conflict would be covered by its previously announced price hikes.
Analysts from JP Morgan said the market was likely to welcome the outlook confirmation.
"There will likely still be some skepticism around the FY26 guidance that it doesn't seem to be assuming any demand destruction from higher inflation, but this will likely be as much of a headwind for most others in the sector," the analysts wrote in a note to investors.
AkzoNobel's adjusted earnings before interest, taxes, depreciation and amortisation were €345m in the first quarter, corresponding to a margin of 14.5%. Analysts polled by it were expecting €323m on average.
AkzoNobel has been trimming its portfolio throughout Asia since 2025, including the sales of its units in India and Pakistan for $1.6 billion and €50m, respectively.
"We continue to evaluate our positions in Southeast Asia, and that process is ongoing," finance chief Maarten de Vries said.
The group is also planning to merge with US paint maker Axalta Coating Systems to create a combined company worth $25 billion.
