Acquisitions help Hexpol grow business in 2018

Malmo, Sweden – Hexpol AB has seen its sales and operating profit grow in 2018, helped by acquisitions in Europe and the US.

In its annual financial report, Hexpol posted a 13% year-on-year increase in sales to SEK13.7 billion (€1.3 billion).

Positive volume development as well as the strengthening of the dollar and Euro contributed to the growth .

Furthermore, higher sales prices for products helped improve income, the Swedish group reported 1 Feb

Sales in Europe increased 18%, 9% in NAFTA 9% and by 19% in Asia compared to the year before.

Additionally, operating profit for 2018 rose 8% to SEK2.5 billion compared to the year before.

Sales in Hexpol’s compounding business increased 13% to SEK12.7 billion and operating profit by 7% to SEK2 billion.

At its engineered products unit, sales jumped 13% to SEK1.0 billion, with operating profit up 27% at SEK144 million.

Group-wide, Hexpol linked some of its growth to acquisitions in the second half of last year.

Hexpol acquired US-based Kirkhill Rubber for €42 million last September and an 80% stake in Italian compounder Mesgo in October.

The deals enhanced Hexpol’s position in ‘advanced elastomers’ and its presence in three new countries, said Mikael Fryklund, president and CEO.

Describing 2018 as the company’s “best year so far,” Fryklund said Hexpol was “well-equipped for further expansion.”