Hexpol upbeat despite declines in sales and earnings

Stockholm – Hexpol AB has reported a 14.0% decline in third quarter earnings (EBIT) to SEK800 million (€70.0 million) on sales of SEK4,977 million, 9.9% lower than in the same period last year.

For the first nine months of 2024, Hexpol posted EBIT down 7.3% year-on-year at SEK2,616 million, while year-to-date sales declined by 8.4% to total SEK15,743 million as of 30 Sept.

President and CEO Klas Dahlberg linked the third quarter decline to “recurring seasonal patterns at our customers driven by holiday periods. However, we also saw slightly lower underlying demand, mainly from automotive-related end customers.”

“Driven by continued lower raw material prices, we still see somewhat lower sales prices,” Dahlberg added in the Swedish-based group’s 25 Oct financial report.

On a more positive note, the global rubber/elastomers compounds supplier reported increased demand from customers in the building and construction industries.  

“Inflation and interest rates are on the way down, but we have not yet seen the positive effects of that on demand,” noted Dahlberg, who believes Hexpol is well positioned “to deal with the disruptions and further strengthen market position.

“The strong business model in combination with a clear acquisition strategy and strong financial position gives us good conditions for continued growth and acquisitions."