Akzo Nobel N.V. published results for third quarter 2020.

Highlights Q3 2020

• ROS, excluding unallocated costs, increased to 17.7% (2019: 13.8%) due to strong margin management and cost savings;
• Growth in volumes of 3%, with strong demand trends for most segments and regions;
• Total cost savings delivered €49 million, of which €27 million structural savings related to transformation initiatives;
• Net cash from operating activities improved by 46% to €457 million (2019: €312 million); maintained a strong balance sheet;
• On Oct. 19, the acquisition of Titan Paints in Spain was announced, with completion expected before the end of Q1 2021;
• €300 million share buyback announced, to be completed in the first half of 2021

Q3 2020 (compared to Q3 2019)

• Revenue 5% lower, while up 1% in constant currencies. Volumes up 3%, showing strong demand for Decorative Paints, partly offset by lower volumes of Performance Coatings and unfavorable price/mix of 1%;
• Adjusted operating income up 18% at €353 million (2019: €300 million); ROS increased to 15.5% (2019: 12.5%);  
• Operating income of €326 million includes €27 million negative impact from identified items, related to transformation costs (2019: €247 million operating income, including €53 million negative identified items); OPI margin up at 14.3% (2019: 10.3%); 
• Net income attributable to shareholders increased 36% to €220 million (2019: €162 million); 
• Adjusted EPS from continuing operations up 34% at €1.30 (2019: €0.97); EPS from total operations at €1.15 (2019: €0.79);
• Interim dividend of €0.43 per share (2019: €0.41)

“We delivered an excellent performance for the third quarter, with revenue growth in constant currencies, and business return on sales up at 17.7% driven by strong discipline on margins and cost savings. These results were made possible by the continued commitment of all AkzoNobel colleagues around the world, adapting to the challenges presented by COVID-19," AkzoNobel CEO Thierry Vanlancker said.

“Although the macro-economic environment remains uncertain, we’re continuing to build on our solid position as a frontrunner in our industry, committed to serving our customers with more innovative and sustainable solutions. That's why we're proud to have received a Platinum rating from EcoVadis for corporate social responsibility and sustainable procurement.”