HempFlax saw its profits before tax skyrocket 616 per cent in 2020 to €659,000, as demand grew for its construction materials and CBD.
The EU’s biggest hemp grower, headquartered in Holland, saw full year revenues up 43 per cent to €14.5m in 2020, with EBITDA increasing 63 per cent to €1.8m.
The numbers were in part driven by a 1,089 per cent increase in sales of the group’s construction materials, arising from its May 2020 acquisition of Thermo Natur, a German manufacturer of nature fibre insulation.
The group also saw a 43 per cent increase in sales of CBD – a compound found in hemp that is legal for consumption, and often used for pain relief or relief from anxiety or depression.
CEO Mark Reinders 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.”
HempFlax use the plant to create sustainable car parts for the likes of Bugatti and Porsche, construction materials, animal bedding, and CBD oil, much of it supplied to UK retailer Holland & Barrett.
The group has also developed a combine harvester attachment that separates the flower from the stalk, which is proving popular with US farmers.
During the Covid-19 pandemic HempFlax was able to remain fully operational.
Reinders said he was optimistic about 2021, with sales in Q1 up 27 per cent on the previous year.