Organic revenue growth dipped slightly for Hempel in 2024 following a year of double digit growth in 2023 with the group seeing marine sales decline by 5.8%.
The decline of 1.3% was primarily driven by the decline in marine sales which were impacted by price adjustments and the postponement of vessel dockings.
Hempel’s revenue in 2024 was EUR 2,185 million.
During the year, Hempel achieved its strongest bottom-line result ever with an adjusted EBITDA margin of 17.9%, an increase of 1.3% versus 2023.
The company also saw CVC join it as minority investor and strategic partner, alongside its majority owner, the Hempel Foundation and divested two non-core decorative businesses, J.W. Ostendorf and Renaulac.
In 2025, Hempel expects to deliver mid-single-digit organic revenue growth and an EBITDA margin above 17%.
“I am satisfied with Hempel’s 2024 performance, a year in which we delivered the best bottom-line result to date with an adjusted EBITDA of EUR 392 million and improved our free cash flow by over EUR 100 million since 2023, to EUR 139 million,” said Michael Hansen, group president and CEO of Hempel A/S.
We remain steadfast in our commitment to long-term sustainable growth.”
Michael Hansen
“We remain steadfast in our commitment to long-term sustainable growth. Our ambition is to run a highly profitable business than enables us to reinvest in Hempel and contribute positively to society through our brands and technologies.
“We progressed with our strategic ambitions during 2024, executing on the plans we had for the year, and we are deeply committed to the road ahead.”
And he explained that future success in the paints and coatings industry will be defined by groundbreaking technologies and innovation.
To this end, Hempel has established a new Technology function that comprises research and development, procurement and sustainability.
“This ensures an even closer link between our customers’ needs, sustainability and product development,” he said.
Marine division
In its Marine division, Hempel launched Hempaguard Ultima, a new silicone coating system developed to enhance ships’ hull performance.
The company says that an industry-wide shift toward silicone technologies contributed to it experiencing a record year in volume for its Hempaguard solutions.
Other highlights for Hempel in 2024 included a 65% reduction in CO2 emissions from its operations from a 2019 baseline.
The company is aiming to reduce emissions by 90% by 2026.
Hempel also achieved a 97% reduction in waste sent to landfill at production sites, compared to the 2019 baseline.
The company has a target to limit waste to landfill to less than 1% of total waste generated from its own operations by 2025.
