Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Akzo Nobel targets rival-beating growth

Published 2020-02-13, 02:35 a/m
Akzo Nobel targets rival-beating growth

AMSTERDAM (Reuters) - Dutch paints and coatings maker Akzo Nobel (AS:AKZO) aims to outpace its competitors' revenue growth in the coming years while lifting profitability, it said on Thursday.

Presenting its goals for the 2021-2023 period, the company said revenue growth would be at least as high as the market's average in those years, with its return on sales increasing by 50 basis points a year.

"Ultimately, our goal is to take our rightful place among the frontrunners in paints and coatings, when it comes to both size and performance," said Chief Executive Thierry Vanlancker.

In 2017 Akzo promised frustrated shareholders it would improve profitability and refused to consider an unwanted takeover offer by U.S. rival PPG Industries (N:PPG).

Akzo then said it would increase return on sales to 15% by 2020. This week the maker of the Dulux and Flexa brand of paints said it was still on track to meet that target after the ratio improved to 12% last year.

The company is the world's third-largest paints and coatings maker by revenue, trailing U.S. rivals PPG and Sherwin-Williams (N:SHW).

As part of Akzo's defense strategy against PPG, Akzo sold its speciality chemicals business for 10 billion euros ($10.9 billion) to a group of buyers led by Carlyle Group (O:CG), with the proceeds distributed largely to shareholders.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.