Akzo Nobel have reported revenue growth of 6% in their Q1 2010 results published today.
The increase from €3,065m in Q1 2009 to €3,246m in Q1 2010 is due to increased volumes in most businesses, says the company, with continued margin management and cost reduction programmes also contributing to an EBITDA growth of 38%.

In the decorative paints sector, revenue increased by 7% from €988m in Q1 2009 to €1,056m in Q1 2010. The report said: "The decorative paints business got off to a good start in 2010, with revenue up 7% due to a 5% increase in volume. In higher growth markets, revenue growth was strong (Asia increased 30%), while revenue remained stable in the mature markets compared with the previous year."

The EBITDA margin was 7.8% for the sector, an improvement of close to 3% compared with 2009, despite severe winter conditions in the northern hemisphere and a weak commercial property market, said the company. Investment in advertising and promotion was increased by 0.5% of sales to accelerate growth in key high growth markets, in line with strategy.

Ongoing restructuring contributed to better results in the mature markets, with the closure and integration of multiple sites across Europe running according to plan, said the report. "In the UK," it added, "the retail market had a solid quarter based on very strong promotional activity by both Homebase and B&Q."

The company says its outlook remains cautiously optimistic. Ceo Hans Wijers said: "We've had a good start to 2010, particularly in higher growth markets, where our performance was strong. While revenue growth across all Akzo Nobel's businesses has been solid, our Q1 performance compares with a particularly weak first quarter in 2009."

He continued: "We expect pressure from further raw material cost increases during the year and remain cautious about the strength of the recovery. Akzo Nobel will continue to focus on customers, cost reduction and cash generation, but we will also prioritize investments and initiatives to ensure that the company is able to capture growth."