Q1 2025 Hexpol AB Earnings Call Transcript
Key Points
- Hexpol AB (HXPLF) reported a strong start to the year with stable sales in Europe and the US, and significant improvement in Asia driven by engineered products.
- The company achieved sales of close to SEK5.4 billion and an adjusted EBIT of SEK839 million with a margin of 15.6%.
- The acquisition of Capcom in Turkey was approved, strengthening Hexpol's position in the wire and cable segment, which is expected to grow.
- Hexpol is committed to sustainability, with a high interest in recycled products, particularly from the automotive industry.
- The company maintains a strong financial position with a high equity asset ratio above 60% and a return on capital employed of about 17%.
- Organic demand was slightly down compared to Q1 last year, mainly due to lower demand from the automotive sector.
- The EBIT margin decreased compared to the same period last year, primarily due to a less profitable product mix.
- There is uncertainty regarding the impact of US trade policies and tariffs, which could affect raw material prices and demand in North America.
- The company experienced a lower cash flow in the first quarter, although it was higher than the previous year.
- The market environment for mergers and acquisitions is currently quiet due to increased uncertainty, affecting potential growth opportunities.
Welcome to the Hexpol Q1 2025 presentation. (Operator Instructions)
Now I will hand the conference over to the CEO, Klas Dahlberg; and CFO, Peter Rosen. Please go ahead.
Thank you, operator, and good afternoon, everyone, and thank you for joining in on the Hexpol Q1 presentation. I'm Klas Dahlberg, and I'm here together with our CEO Peter Rosen. If you please turn to page 2.
I will start with a business update, tell you a little bit about our latest acquisition capcom in Turkey, and also the organizational changes we have done during the quarter and then touch upon the US trade policy, how that affects us. Peter will take you through the financials and I will then summarize the quarter and focus areas going forward. After that, we're happy to answer your questions, of course. And if you please turn to page 4.
Let me start by going through the Q1 performance. We did have a good start of the year, despite the uncertainty in the world. We're happy to report that we did see
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