Hexpol reports record sales, profit in 2021

The Swedish group posted a 59% year-on-year increase in operating profit to SEK3.0 billion (€23.8 million) during the year, on 20% higher sales to SEK16.0 billion, Hexpol announced 28 Jan. Profit after tax increased 67% to SEK2.3 billion.

Over the final quarter of the year, sales grew 20% to SEK4.0 billion, while operating profit declined 13.6% to SEK537 million, due mainly to non-recurring costs of the fire at Hexpol's rubber compounding site in Jonesborough, Tennessee, earlier this year.

“We had a strong sales growth of 20% percent compared with the corresponding quarter last year, driven by good sales in all markets and product areas,” said Georg Brunstam president and CEO. 

Brunstam said the higher sales came in despite “disturbances” such as production stoppages at automotive customers, global transport problems and raw material shortages. 

“Our large geographical coverage with manufacturing close to our customers is a clear competitive advantage. 

“[The year] 2021 as a whole was a very good year for the Hexpol Group with record sales and record profit, our best year so far,” he added.

According to Brunstam, major challenges currently facing the Swedish group are the automotive industry’s frequent production stoppages, supply-chain and raw materials disruptions as well as the “sharp increase” in absence due to the spread of Covid.

However, he went on to say, Hexpol is “flexible and ready to meet the expected increase in vehicle production.”

Furthermore, Brunstam said the group was working on launching new compounds with bio-based and recycled materials as part of its sustainability target of reducing carbon footprint by 75% by 2025.