Malmo, Sweden – Hexpol AB has reported a 32% quarter-on-quarter improvement in sales, as demand starts to recover from the Covid-19 downturn.
Third quarter sales came in at SEK3.3 billion (€320 million), down 22% compared to the same period last year, but considerably higher than SEK2.5 billion reported in the second quarter, the Swedish compounder announced 23 Oct.
Operating profit (excluding non-recurring items) increased 1.7% to SEK593 million, compared to SEK583 million reported in 2019.
Third quarter operating margin increased to 17.8%, up from 13.7% last year, while profit after tax increased 20% to SEK426 million.
Over the nine-month period, sales were down 14.5% at SEK10.0 billion, while operating profit, dipped 19% to SEK1.4 billion.
Hexpol linked the lower sales to Covid-19, which it said impacted the countries where it operates and the customers it supplies to.
In addition, lower sales prices contributed to the decline, according to acting CEO Peter Rosén, who was replaced by Georg Brunstam on 23 Oct.
Despite the pandemic effect, Rosén said Hexpol saw “a clear improvement” in sales, in the three months to end of September, specifically to automotive customers as well as the building & construction industry.
While uncertainty remains high due to the Covid-19 pandemic, Rosén said geographical proximity to customers and significant cost-cutting had strengthened Hexpol’s financial position, providing it with "good conditions for continued growth and additional acquisitions."