Hempel continued its growth trajectory in 2021, ending the year with 5.9 percent organic growth, following 10 consecutive quarters of organic growth. Total growth was 15.1 percent, despite supply chain challenges across the coatings industry.
The 5.9 percent organic growth was the highest in more than 10 years, driven by strong performance in the Marine and Infrastructure segments, and stronger than expected in the face of unprecedented raw material cost increases and shortages. EBITDA was EUR 203 million, resulting in a stable EBITDA margin of 11.4 percent, in line with outlook.
“Our performance in 2021 was very satisfactory and demonstrates that the decisive actions taken to refocus our ambitions and deliver on our strategy are paying off,” says Lars Petersson, Group President & CEO of Hempel. “Our ambition is to double our business by 2025 and to increase our positive impact in terms of sustainability – and we remain on track.”
Hempel made two major strategic acquisitions during 2021. In April, it acquired Wattyl, one of Australia and New Zealand’s leading manufacturers of coatings for the decorative and infrastructure segments. In September, it followed with the acquisition of UK-based Farrow & Ball, the world’s leading luxury decorative paint and wallpaper company. Together, the two companies added revenue of EUR 162 million in 2021, with expectations of an annualized full year impact in 2022 of around EUR 275 million.
The 2022 outlook is mid to high single-digit organic revenue growth. Further, despite the unpredict-able circumstances affecting raw materials, Hempel foresees a slightly increasing EBITDA margin between 11 and 12 per cent, leading to an EBITDA of EUR 220-240 million.
The company saw increased demand for its more sustainable products, such as its advanced hull coatings that deliver fuel savings, and thereby CO2 reductions, by improving a vessel’s hydrodynamics. In 2021, Hempel’s hull coatings helped marine customers reduce CO2 emissions by 4.5 million tons, up from 3.6 million tons in 2020. Hempel aims to increase this to 5.5 million tons in 2022.
