Dutch firm sees 13% uplift in decorative paints, with promotional activity helping to grow market share in the UK.
Akzo's decorative paints business got off to a good start in 2011, with revenue up 13% to €1,196m for the three months ended March 31.

Akzo offset the rising cost of raw materials with price increases across the board, enabling the firm to maintain overall margins and achieve a 10% increase in EBITDA for the period.

The paint firm also upped its advertising spend by 17% for the period, helping grow market share in the UK, where sales benefited from promotional activity.

Demand in mature markets, including the UK, was stable, with sales up 8% in Europe, driven by positive volume figures, up 9%.

Akzo said it is determined to grow its business in Europe, having seen good growth in Turkey and Russia, but feels the outlook for its Western European markets remains challenging.

The company plans to monitor the developments in raw material prices and explains it has "actions in place to compensate for potential higher raw material costs".

Overall, Akzo Nobel, which also has speciality chemicals and performance coatings operations, reported a 16% sales jump in Q1, driven by positive sales volumes and price increases. EBIDTA also increased 10% to €437m for the period. The company said it is aiming for more than 5% revenue and EBITDA growth this year.