Hempel sets record financial results in 2023

In 2023, Hempel achieved historic organic revenue growth of 13.7%, with revenue reaching €2.351 billion, an increase of €192 million compared to 2022.

This growth was driven by strong results across the business. Additionally, Hempel's Adjusted EBITDA increased to €349 million in 2023, compared with €257 million in 2022. Adjusted EBITDA margin was 14.8%.

Michael Hansen, President and CEO of Hempel A/S Group said: "Hempel achieved record-breaking results in 2023. We set ambitious goals and exceeded our expectations. The strong performance was driven by strong performance across our business. "

n 2023, Hempel continues to focus on innovation and developing more sustainable solutions that meet the needs of customers and help them reduce their CO2 footprint. This focus is reflected in growth in all four Hempel customer segments, with double-digit organic revenue growth of 26.2% and 18.6% in the Marine and Energy segments respectively.

In terms of revenue, the Decoration division retained its position as Hempel's largest customer segment, achieving revenues of €792 million for the full year. Sales in the Infrastructure Customers segment increased 9.6%.

"At the heart of this growth journey are the synergies between Hempel's highly skilled talent and extensive global operations," Hansen said.

Organic revenue is expected to grow in the single digits in 2024, with EBITDA margins reaching around 15%. Hempel's Double Impact strategy has proven to be robust and effective.

"In 2020, we launched Double Impact to deliver innovative, sustainable solutions that deliver significant positive impact to our customers and society as a whole. Initially, our strategy had a clear goal to double revenue in five years. We are working hard to achieve this goal. " Hansen said.

Hempel's new state-of-the-art China factories in Yantai and Zhangjiagang are now operational and are poised for accelerated growth in the coming years. This maximizes the positive impact Hempel and its employees and owner, the Hempel Foundation, have on the world.

At Hempel, sustainability leadership means being a leader in the paints and coatings industry; addressing material topics such as climate, biodiversity, resource depletion and diversity. Hempel's sustainability framework "Futureproof" plays an important role in driving this work.

In 2023, Hempel made significant progress towards achieving its science-based targets and ESG commitments, reducing combined Scope 1 and 2 emissions by 51% compared to the 2019 baseline.

In May 2023, the Carbon Disclosure Project (CDP) recognized Hempel's efforts in its supply chain engagement on climate issues, awarding Hempel an A grade in its 2022 Supplier Engagement Ratings. Hempel was also awarded a B grade by CDP for good environmental management in the 2023 Environmental Disclosure and Scoring process.

"Putting sustainability at the heart of everything we do means we are not only focused on lowering operational emissions and reducing the resources we use, but also continuing to develop products and solutions that support our customers' sustainability journeys. For example, our high-performance hull coatings helped maritime industry customers reduce 6.5 million tons of CO2 emissions in 2023 alone. That's a 16% improvement compared to 2022. " Hansen concluded.