Record turnover for insulation manufacturer Kingspan in passing on costs to customers

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Insulation maker Kingspan’s revenue rose 42 percent to a record €4.2 billion for the six-month period ended June as higher prices and acquisitions delivered a bonus for shareholders.

The company announced that it has appointed former CRH and Bank of Ireland managing director Senan Murphy as an independent non-executive director. Mr Murphy, who does not hold Kingspan shares, previously held senior positions at Ulster Bank, Airtricity and GE.

Increasing sales of insulating boards, insulating materials and district heating as well as entry into the market for waterproofing and “natural” insulating materials drove the excellent results.

In its half-year results on Friday, the Cavan-headquartered company said it passed on “an unprecedented level of commodity increases in 2021.”

Trading profit rose 32 percent to 434.2 million euros, while profit before finance costs, income taxes, depreciation and non-trading items rose 30 percent to 512.2 million euros.

This resulted in a 29 percent increase in basic earnings per share to 170.6 cents.

Shareholders will receive an interim dividend of 25.6 cents, also up 29 percent and in line with guidance.

Insulated panel sales increased 39 percent, with insulation sales up 69 percent due to higher prices and acquisitions.

A new roofing and waterproofing business – with an expected annual sales rate of more than €500 million – helped drive the company’s optimistic view.

Kingspan acquired Belgian company Derbigum in June and approved the purchase of global waterproofing company Ondura Group in August, while in the same month it acquired a 24 per cent minority stake in Nordic Waterproofing.

The company also acquired Troldtekt, a Danish manufacturer of natural soundproofing.

Kingspan entered the district heating market last year, with full-year 2022 order intake expected to be 50 percent higher than 2021.

In the first six months of the year, a total of 522 million euros was invested in new business and capital expenditure.

Kingspan also plans organic growth over the next five years with 25 new production lines and a €200 million Building Technology Campus in Ukraine.

But Kingspan said that while deliveries were “solid” across most of its businesses in the six months to June, “the opposite was true for incoming orders.”

“Despite a challenging trading environment, Kingspan has exceeded 4 billion for the first time.

“Looking ahead, we maintain the outlook we provided in our June trading update, but remain confident in the long-term demand for the energy efficient solutions we deliver.

“While inflationary pressures have eased in recent months, we will closely monitor the context of energy supply constraints over the winter months in Europe.”

https://www.independent.ie/business/irish/record-high-revenues-for-insulation-maker-kingspan-as-it-passes-on-costs-to-customers-41922423.html Record turnover for insulation manufacturer Kingspan in passing on costs to customers

Fry Electronics Team

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