Exol Earnings Fell in 2022


Exol Earnings Fell in 2022

United Kingdom-based blender Exol Lubricants Ltd. reported a 12% decline in net profit on a 25% rise in sales for full-year 2022, as price hikes led to a small decline in operating profit, according to its financial statements filed recently with a U.K. government agency.

Based in West Midland, the company on Nov. 17 filed its full-year 2022 annual report and financial statements on Companies House agency’s website.

The independently owned lubricant blender reported a drop in net profit to £3.2 million (U.S $4 million), compared to £3.6 million.  Operating profit decreased 4% to £4.6 million.

In its strategic report for 2022, Exol’s directors said they were pleased with the operating performance in light of the volatile trading conditions experienced throughout the year, which followed the outbreak of war in Ukraine during February. “This created severe disruptions in supply chains still recovering from the pandemic and led to shortages of key raw materials,” they noted. “As in 2021, significant price escalation ensued, and this only really subsided towards the end of the year.” The operating profit declined last year “as raw material increases could only be recovered in arrears,” the company said.

Sales revenue last year jumped to £104.8 million, compared to £84 million in 2021.

According to the company’s analysis, sales in 2022 in the United Kingdom rose 22% to £95.3 million, while sales in the rest of Europe surged by 75% to £5.7 million and sales in the rest of the world jumped 58% to £3.8 million.

The company supplies lubricants and associated products for automotive, marine, off-highway, agricultural, rail and industrial applications manufactured at its head office and production facility in West Midlands and at its bulk blending plant in Rotherham. In 2021, Exol redeveloped its Rotherham site to increase its blending capabilities – adding more blending vessels and storage tanks – to meet increased consumer demand.

In 2016, the company invested in packaging equipment at the West Midlands facility, adding two filling machines. In 2013, the company invested more than €2 million (then U.S. $2.6 million) to redevelop its head office and manufacturing site.

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