EUROPEAN pioneer HempFlax has posted record annual results with revenues up 43% to €14.5m (£12.5m) as it returned a profit for the second consecutive year.
The Dutch company’s performance was supported by the use of its hemp fibres as an alternative to glass fibre in making cars such as the Porsche Cayman GT4.
Its also secured a 42% increase in sales of its CBD products marketed through Holland & Barrett under the Jacob Hooy brand as consumers turned to personal wellness during the Covid-19 pandemic
Mark Reinders, HempFlax’s CEO, said : “We have spent 25 years making hemp a profitable endeavour. Through consistent investment and intense learning, HempFlax has achieved a vertically integrated supply chain able to produce natural products that hold their own against unsustainable alternatives in a range of industries from construction, to automobiles, to animal care.
Doing The Right Thing
“The growing of hemp reduces the amount of CO2 in the atmosphere. For too long, doing the right thing by the planet has eaten into company profits.
“Hemp, grown and processed by HempFlax, bucks this trend: 2020 marks the fourth year that HempFlax has profitably grown, and trading since the start of the year indicates this success will continue throughout 2021.”
The company says it achieved revenue growth across all of its divisions which include; CBD, hemp-based plastics, construction, animal care, horticulture and genetics & cultivation.
During 2020 the company launched a building supplies division, HempFlax Building Solutions, following the acquisition of Thermo Natur; a manufacturer of natural fibre insulation materials.
Popular In The US
The company has also developed a combine harvester attachment capable of separating the flower, stalk and seeds, which it says is proving popular in the US.
Sales of its animal bedding increased as over three million UK households sought solace in a family pet during the pandemic, it said. For the year ending December 31, 2020, Hempflax recored sales of €14.5m compared to €10.1m in 2019.
Its EBITDA increased by 63% to €1.8m from €1.1m in 2019, with profit before tax up 616% to €659,000.
Mr Reinders says that Q1 2021 sales were up 27%. In a press release he said the group is in the process of installing solar panels on the roof of its headquarters in Oude Pekela to make it energy self-sufficient.
However Mr Reinders called for a speedy adoption of the 0.3% THC seed levels across the European Union.
“UK and EU lawmakers urgently need to permit maximum THC levels of 0.3% in the field, thus facilitating the breeding of more varieties and aligning the European regulatory framework with other international jurisdictions, notably the US. Direct government funding is also needed to incentivise the development of carbon-negative hemp supply chains across the region.”
The company was founded in 1993 by Ben Dronkers with the aim of restoring the centuries-old hemp crop to its former glory and it now cultivates on 3,500 hectares in Holland, Germany and Romania.