Hexpol posts ‘best ever quarter’ amid market uncertainties

Malmo, Sweden – Hexpol AB has reported its “best quarter to date”, buoyed by strong demand in its Americas region and contributions from acquired businesses.

The Swedish rubber processor posted a 22% year-on-year increase in earnings (EBITDA) to SEK975 million (€86 million), on first quarter sales up 16% to SEK6 billion.

Sales were strong in most markets and product areas, said president and CEO Georg Brunstam, noting "above all, America showed continued strong development.”

Sales to the automotive industry showed “an improvement but still varied from market to market,” Brunstam added in Hexpol's 28 April statement.

In Europe, meanwhile, the Malmo-based group observed “great uncertainty”, particularly in the building & construction sector.

Challenges continued within Hexpol's supply-chains duing the first three months of 2023, though at a lower intensity and mainly for certain raw materials.

Among its business units, Compounding reported a 16% year-on-year increase in sales, to SEK5.6 billion, helped by a 7% positive currency effect.

First quarter sales at Hexpol Engineered Products increased 12% to SEK373 million, reflecting positive development in Asia.

Going forward, Hexpol expects continuing uncertainties linked to high inflation and high interest rates and supply-chain disruptions.

Hexpol expects to continue its acquisition strategy, supported by “strong financial position,” the group also stated.