Kingspan sees profits and sales rise as material costs soar
Kingspan profits and sales rise, but building insulation group warns raw material prices will persist for the rest of the year
- The Ireland-based group recorded strong growth in profits and turnover
- He is optimistic for the year ahead, but said commodity prices remain high
- The company also announced a new acquisition agreement to buy the Ondura Group
Kingspan Group has seen profits and sales rise over the past year and, despite a slower fourth quarter, remains optimistic about its outlook for 2022.
The Ireland-based building materials and insulation company said its revenue rose 42% to €6.5bn last year, as it also announced a €550m deal to buy French roofing membrane supplier Ondura Group.
Kingspan said the acquisition of Ondura, which is expected to close in the second half, will boost its earnings by around 7% a year.
On the rise: Kingspan Group has seen both profits and sales rise over the past year
The company posted a 49% increase in trading profit to 755 million euros over the past year, with basic earnings per share up 48% to 305.6 cents.
Acquisitions contributed 12% of sales growth and 11% of trading profit, Kingspan said.
The group announced a final dividend per share of 26 cents, making a total dividend for the year of 45.9 cents.
At the end of the year, Kingspan’s net debt stood at €756.1 million, compared to €236.2 million the previous year.
Boss Gene Murtagh said: “The business delivered an outstanding performance last year, with our growing sales to customers in the technology, online retail and automotive sectors being instrumental in results.
“While dramatic input price inflation was a major feature, our cost recovery efforts helped ensure continued improvement in margins.
“Despite a slower fourth quarter, with a strong backlog, we are cautiously optimistic about the outlook for this year, while keeping in mind the high bar compared to last year’s performance.
“High energy costs and global supply threats are a catalyst to focus on conservation measures, which is likely to accelerate demand for low-energy solutions that we believe , will support demand for our products.”
The company said it spent more than 500 million euros on acquisitions in 2021 and since the end of the year it has committed another 800 million euros on three transactions.
The group has 14 manufacturing sites and a distribution network in 100 countries.
Looking ahead, the group said: “2022 has started well, helped by the strong order book at the end of last year, although it is still in its early stages.
“Commodity prices, which have seen strong increases for much of 2021, remain at high levels with no evidence that this situation is changing significantly.
“Our business outlook beyond the first quarter is less visible, although the prevailing mood in our end markets, for the most part, remains one of cautious optimism.”