Malmo, Sweden – Hexpol AB has seen its second quarter and half-year results lifted significantly, helped by strong sales in all markets and lower cost base compared to 2020.
Second quarter earnings (EBITDA) rose by 225% year-on-year to SEK745 million (€71 million), on 58% higher sales of SEK4 billion, Hexpol announced 14 July.
Operating margin increased to 18.2% from 7.2%, while operating profit (EBIT) rose 298% to SEK728 million.
Over the first six months of the year, sales increased 17% to SEK7.8 billion and earnings were up 75% to SEK1.4 billion, Hexpol said.
"We saw a very high organic sales growth of 70% compared with the corresponding quarter last year, driven by good sales on all markets and product areas,” said Georg Brunstam president and CEO.
A large part of the increase, he noted, was due to the previous year’s major shutdowns related to Covid-19.
“The combination of strong sales and volumes as well as a lower cost base, gave yet again, our best quarterly result ever,” he added.
Despite the strong performance, Brunstam warned that uncertainty "still remains high."
The company saw “substantial disruptions” in the supply chain to its customers during the quarter, especially when it came to the lack of semiconductors.
“During the quarter, we ourselves, also experienced substantial disruptions in the supply chain affected by global transport and raw material problems,” he added.
While the Covid-related restrictions and shutdowns add to uncertainty levels, Brunstam said his company was in a strong position due to its geographical closeness.
“[Our] strong business model in combination with a clear M&A agenda and strong financial position give us good conditions for continued growth and acquisitions,” he concluded.