MALMO, Sweden—Hexpol A.B. saw improved second quarter and half-year results, helped by strong sales in all markets and lower cost base compared to 2020.
Second quarter earnings (EBITDA) rose by 225 percent year-on-year to $86 million, on 58 percent higher sales of $460 million, Hexpol said July 14.
Operating margin increased to 18.2 percent from 7.2 percent, while operating profit (EBIT) rose 298 percent to $84 million.
Over the first six months of the year, sales increased 17 percent to $898 million and earnings were up 75 percent to $161 million, Hexpol said.
"We saw a very high organic sales growth of 70 percent 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.