Q3 2024 Hexpol AB Earnings Call Transcript
Key Points
- Hexpol AB (HXPLF) delivered a solid EBIT of SEK800 million with a strong margin of 16.1%.
- The company maintains a high equity asset ratio of 64% and a return on capital of 18.4%, indicating financial stability.
- Hexpol AB (HXPLF) continues to focus on sustainability, with high interest in recycled products, particularly in the automotive industry.
- The company is well-prepared for the EU's proposed end-of-life vehicle amendment, with facilities like Almaak in Germany using 90% recycled materials.
- Hexpol AB (HXPLF) has a strong business model with a decentralized structure, allowing flexibility and efficiency in operations.
- Sales were down 9% compared to the same period last year, primarily due to lower demand from the automotive sector.
- The company experienced negative currency effects, particularly related to the US dollar, impacting sales by SEK172 million.
- Organic sales decreased by 7%, driven by lower volumes and sales prices.
- The operating margin decreased compared to the same period last year, affected by lower volumes that couldn't be offset by cost reductions.
- There is ongoing uncertainty in the automotive sector, with potential risks of further demand weakening impacting future financials.
Welcome to the Hexpol Q3 presentation. Now, I will hand the conference over to the Chief Executive Officer Klas Dahlberg and Chief Financial Officer Peter Rosen. Please go ahead.
Thank you and good afternoon, everyone. And thank you for joining in on the Hexpol Q3 presentation. I'm Klas Dahlberg and I'm here together with our Chief Financial Officer Peter Rosen. If you please turn to page 2 of the presentation, I will start with the business update. I have an interesting case from Germany covering recycled material that I would like to share with you. And I will also highlight the importance of our business model. Peter will take you through the financials and I will summarize the quarter and our focus areas going forward. After that, we are happy to answer your questions. If you please turn to page 4, then I will go through the quarter. When looking at demand and sales in the third quarter, demand was down versus Q3 last year, mainly affected by lower demand from automotive and customers. The S&P Global
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