MOSCOW (MRC) -- Hexpol (Malmo, Sweden), a polymer compounder, says net profits in the fourth quarter of 2022 grew by 40% year on year (YOY) to 624.0 million Swedish kronor (USD60.5 million) on sales up 35% YOY to SKr5.49 billion. Adjusted EBITA increased 29% YOY to SKr837.0 million, said the company.
EBITA margin was 15.2%, 0.7 percentage points lower YOY. “[The company posted] good sales in all markets and all product areas. However, at the end of December we saw lower sales compared to the beginning of the quarter, affected by inventory reductions at customers and the effects of the extreme winter weather in USA. Despite that, America showed overall a continued strong development,” says Georg Brunstam, president and CEO at Hexpol.
Hexpol’s compounding business posted a 36% YOY growth in sales to SKr5.15 billion. EBIT increased 55% YOY to SKr767.0 million. Sales of the company’s engineered products were up 18% YOY to SKr347.0 million. The business’s EBIT increased 76% YOY to SKr74.0 million.
We remind, Hexpol has completed the previously announced acquisiton of US thermoplastic compounding company McCann Plastics for USD120m on a cash and debt free basis. McCann Plastics, of North Canton, Ohio, specialises in niche thermoplastic compounds, with a focus on roto moulding applications. Its main end customer segments are general industry, agriculture and specialised cooling boxes. The company, with sales of USD72m in the past 12 months, has operations at two sites in Ohio and employs about 100 people.