Half-year report January - June 2020

SECOND QUARTER 2020

  • Sales decreased by 31 percent to 2,526 MSEK (3,685).
  • Operating profit, excl. non-recurring items, amounted to 209 MSEK (551).
  • Operating margin, excl. non-recurring items, amounted to 8.3 percent (15.0).
  • Profit after tax amounted to 122 MSEK (413).
  • Earnings per share, excl. non-recurring items, decreased by 66 percent to 0.41 SEK (1.20). Earnings per share including these items amounted to 0.35 SEK (1.20).
  • Operating cash flow amounted to 225 MSEK (709).
  • Non-recurring items, before tax, amounted to 26 MSEK (0).

FIRST HALF-YEAR 2020

  • Sales decreased by 11 percent to 6,694 MSEK (7,490).
  • Operating profit, excl. non-recurring items, amounted to 796 MSEK (1,137).
  • Operating margin, excl. non-recurring items, amounted to 11.9 percent (15.2).
  • Profit after tax amounted to 527 MSEK (851).
  • Earnings per share, excl. non-recurring items, decreased by 31 percent to 1.70 SEK (2.47). Earnings per share including these items amounted to 1.53 SEK (2.47).
  • Operating cash flow amounted to 752 MSEK (1,063).
  • Non-recurring items, before tax, amounted to 76 MSEK (0).

"The second quarter showed sales of 2,526 MSEK, a decrease by 31 percent compared to the same quarter previous year. The lower sales were affected by Covid-19 and its impact on both the countries we are in and the customers we supply with our products. We reduced our costs considerably during the second quarter compared to the first quarter, but the lower sales still impacted and we saw an adjusted EBITA of 229 MSEK, which corresponds to a margin of 9.1 percent. At the same time, we further strengthened our equity-assets ratio compared to previous year to 63 percent.

HEXPOL's experienced and decentralized organization shows its strength in situations like this with major and varied challenges. Every unit acts fast and adapts to the conditions that apply locally, both to be able to support our customers but also to secure our financial position. At the same time, all necessary processes and resources are coordinated centrally to benefit in the best possible way of our global position. When we look ahead it is obvious that the Covid-19 pandemic and the measures taken around the world has a substantial impact on all of us. Not least, there is a great uncertainty about what we can expect going forward.

It is our belief that HEXPOL's combination of financial strength and decentralized organization gives us good conditions to get us through this in a good way."

Peter Rosén, acting CEO & CFO

 
Half-year report January - June 2020

HEXPOL is a world-leading polymers group with strong global positions in advanced polymer compounds (Compounding), gaskets for plate heat exchangers (Gaskets), and plastic and rubber materials for truck and castor wheel applications (Wheels). Customers are primarily systems suppliers to the global automotive and engineering industry, construction industry, the energy, oil and gas sector, medical equipment manufacturers and OEM manufacturers of plate heat exchangers and forklifts. The Group is organised in two business areas, HEXPOL Compounding and HEXPOL Engineered Products. The HEXPOL Group's sales in 2019 amounted to 15,508 MSEK. The HEXPOL Group has approximately 4,800 employees in fourteen countries. Further information is available at www.hexpol.com.

This press release consists of such information that HEXPOL AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Market Act. The information was submitted for publication, through the agency of the contact person set out above, at 11:00 a.m. CET on July 17, 2020. This report has been prepared both in Swedish and English. In case of any divergence in the content of the two versions, the Swedish version shall have precedence.

For more information, please contact:

Peter Rosén, Acting CEO & CFO
Tel: +46 (0)40 25 46 60