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Akzo Q1 In Line; FY/MT Guidance Confirmed (Incl. Leverage Target); Not A Spread Mover

BASIC INDUSTRIES
  • Q1 revenue in line at -1% YoY while adj-EBITDA was just over 2% ahead of consensus (+19% YoY).
  • Net income looks like a decent beat (+93% YoY to EUR 181mn against consensus of EUR 156mn) so equity may be happy with that. FY/MT guidance unchanged.
  • Leverage flat QoQ at 2.7x; management still targeting 2.3x by year-end and 2x over MT. FCF of negative EUR 211mn was worse than the EUR 112mn seen in Q123, mainly on the back of calendar-based WC changes outweighing higher EBITDA.
  • EUR spreads muted; up to 1bp tighter in early trading.

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