Year-end report 2022

OCTOBER – DECEMBER 2022

• Sales increased by 35 percent and amounted to 5,495 MSEK (4,085).
• EBIT increased by 57 percent and amounted to 841 MSEK (537).
• EBIT-margin amounted to 15.3 percent (13.1).
• Adjusted EBIT (excl. non-recurring items) increased by 29 percent to 811 MSEK (628).
• Adjusted EBIT-margin (excl. non-recurring items) amounted to 14.8 percent (15.4).
• Profit after tax amounted to 624 MSEK (446).
• Earnings per share amounted to 1.81 SEK (1.29).
• Operating cash flow amounted to 1,366 MSEK (752 excluding insurance compensation 2021).

JANUARY – DECEMBER 2022

• Sales increased by 39 percent and amounted to 22,243 MSEK (16,005).
• EBIT increased by 7 percent and amounted to 3,290 MSEK (3,074).
• EBIT-margin amounted to 14.8 percent (19.2).
• Adjusted EBIT (excl. non-recurring items) increased by 19 percent to 3,260 MSEK (2,737).
• Adjusted EBIT-margin (excl. non-recurring items) amounted to 14.7 percent (17.1).
• Profit after tax increased to 2,483 MSEK (2,358).
• Earnings per share increased by 5 percent to 7.21 SEK (6.85).
• Operating cash flow amounted to 2,813 MSEK (2,731).
• The Board of Directors propose a dividend of 3.60 SEK per share (3.00) for 2022.

"Once again, we delivered a very strong quarter. Adjusted EBIT amounted to 811 MSEK (628), which in terms of results is our best fourth quarter so far and represents an increase of 29 percent compared with the corresponding quarter previous year. The sales growth for the quarter as a total was strong with an increase of 35 percent compared with the corresponding quarter last year, with 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. The development for HEXPOL Engineered Products was very strong during the quarter, driven by increased demand for energy saving products. Included in the positive sales development for HEXPOL Group are effects from acquisitions, positive currency effects and increased sales prices.

Strong execution of our solid business model with high customer focus combined with our ability to offer fast and stable deliveries, and the implementation of price adjustments are the key to our strong results. This together with our large geographical coverage with manufacturing close to our customers increases our delivery capacity."

Georg Brunstam, President and CEO