Hempel Enjoys Growth in a Turbulent Market

Driven by growth through a strategic acquisition in the decorative coatings market, Hempel’s revenue grew by 21 per cent in 2011, passing the EUR one billion milestone for the first time.

The Hempel Group delivered an operating profit of EUR 72 million in 2011, and a record turnover of EUR 1,077 million. Increasing raw material prices had an impact on Group profitability. Hempel’s 2011 results: Group revenues rose by 21 per cent, from EUR 889 million to EUR 1,077 million. EBITDA of EUR 105 million was the second highest in the Group’s history. Operating profit of EUR 72 million was  reported. The net profit was EUR 35 million.

The growth in revenue was driven by the revenue gained following the strategic acquisition of Crown Paints, the second largest decorative coatings manufacturer in the UK. The revenue generated by Crown Paints more than doubled Hempel's revenue in the Decorative segment.
Excluding Crown Paints, Hempel's revenue increased by seven per cent.

“The major investments and new activities we launched during 2011 are in line with our strategic growth plans,” said Pierre-Yves Jullien, Group President and CEO of Hempel A/S. “We are particularly satisfied with the integration of Crown Paints into the Hempel Group, which is
having the intended effect of strengthening our Decorative segment on the global market.”

Hempel considers the result for the year to be satisfactory in a year of rapidly increasing raw material costs and a global coatings market under sigificant pressure. An EBITDA of EUR 105 million in 2011 was the second highest in the Group’s history, exceeded only by the 2010 EBITDA of EUR 118 million.