AkzoNobel: 2020 adjusted EPS up 25%
(CercleFinance.com) - Dutch paint and coatings group AkzoNobel has announced adjusted EPS of 3.
88 euros for 2020, a figure that exceeds the consensus and which is up 25% compared to 2019.
While the specialist in paints and other chemical products saw its 2020 sales contract by 8% compared to 2019, reaching 8.5 billion euros, growth in EBITDA was a mirror image of this decline - rising 8% to 1.44 billion euros.
Meanwhile, net profit increased by 17% to 630 million euros.
AkzoNobel CEO, Thierry Vanlancker, said, “Our 2020 results demonstrate structural performance improvement from the first phase of our transformation. Despite COVID-19 headwinds, we rose to the challenge and delivered our 15 by 20 promise, achieving 15% return on sales and more than 20% return on investment”.
For 2021, AkzoNobel targets growth that is at least in line with its markets. The company says that margin management and cost reduction programs have been implemented to generate a 50 basis point increase in return on sales. The company is aiming for a debt-to-EBITDA ratio of 1 to 2 times net debt and is committed to maintaining a strong credit rating.
The share is just under water at present in a pretty flat market in Amsterdam.
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