Malmo, Sweden – Swedish compounder Hexpol AB expects to report adjusted operating profit for third quarter 2020 “well above market expectations.”
In an investors trading update 5 Oct, Hexpol said it anticipated that adjusted operating profit for the quarter ended 30 Sept to be in the range of SEK560 million (€53 million) to SEK590 million.
Hexpol's operating profit (excluding non-recurring items) fell 30% year-on-year to SEK796 million on 11% lower sales of SEK6.7 billion during the first six months of the year.
Second quarter results were particularly hit by the Covid pandemic, as the group reported a 62% decline in profits to SEK209 million.
In its most recent update 5 Oct, Hexpol linked the third quarter increase to "higher volumes compared to the previous quarter combined with substantially lower costs.”
The compounder expects sales to be in line with expectations.
Hexpol said that the third quarter results will not have any “benefits related to Covid-19 Swedish government grants.”
The group will publish its full third quarter report 23 Oct.