PHILADELPHIA, PA — For shareholders of Axalta Coating Systems, the global front-runner in the coatings industry, the closing figures for 2023 bring reason to celebrate. The firm has successfully navigated tumultuous market conditions to close the year on a high note, with significant growth in both net sales and net income.
The final quarter of 2023 saw Axalta’s net sales soar by 4.9% from the previous year, reaching a robust $1.3 billion. This growth stems from a favorable foreign exchange benefit of 2.3%, an improvement in volumes by 1.7%, and a 0.9% growth in price-mix. The company’s net income witnessed a whopping 68% jump, reaching $74 million, a remarkable increase from the preceding year’s $44 million.
Axalta’s improved performance was also evidenced in the key metric of Adjusted EBITDA, which climbed to $251 million in the fourth quarter from $208 million in the equivalent period of 2022. The Adjusted EBITDA margin too, marked a significant uptick, leaping by 250 basis points to 19.3%.
The full year was no less impressive—Axalta reported a 6.1% escalation in net sales, touching a staggering $5.2 billion. Net income for the year amounted to $269 million, reflecting the strength of price-mix growth and variable cost deflation. Furthermore, the company’s Adjusted EBITDA improved to $951 million, cementing solid contributions from both Axalta’s segments.
As for the cash flow performance, it too turned in positively robust figures. Cash from operating activities hit $286 million for the fourth quarter and $575 million for the full year 2023. Free cash flow amounted to $254 million in the fourth quarter, and $447 million for the year, spurred by working capital benefits and improved earnings.
Axalta’s CEO and President, Chris Villavarayan, looked upon the company’s promising performance with well-earned confidence, stating, “We finished the year out strong and intend to build on this momentum in 2024. We believe we are only just beginning to unlock the potential of this enterprise.”
Looking to the future, Axalta anticipates low-single-digit net sales growth in the first quarter of 2024, while maintaining its commitment to driving growth, managing costs, and delivering value to its shareholders.
To sum up, Axalta Coating Systems’ stellar financial results for the fourth quarter and the full year 2023 underscore its ability to steer through choppy market waters. With an unwavering focus on innovation, cost management, and customer satisfaction, the company remains poised for continued success in the competitive coatings industry.
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