Kingspan Trading Update for First Quarter 2023

KINGSPAN GROUP PLC has reported a first quarter sales increase of 4% on last year, to €2bn (£1.76bn) for the three-month period to 31 March 2023.

In its first trading update of the year, the insulation and building envelope product manufacturer reported insulated panels sales were down 5% (-6% underlying) compared to the accelerated demand in a highly inflationary environment last year.

The company says market activity over the last 18 months has been “gyrating” month on month. It adds that order placement in the first quarter has been sluggish overall but nevertheless represented 25% of all orders placed during 2022. QuadCore specification continues to progress globally Kingspan says, adding that its lower embodied carbon (LEC) is likely to help sales further.

Q1 2023 Trading Update

Insulation sales were in line with the first quarter of 2022 (-4% underlying). Technical Insulation continued its strong performance and the business says its divisional activity is benefiting from an increasingly diverse range of products, applications and end markets.

Light, Air + Water sales were up 3% (+4% underlying) in the first quarter with a “solid” pipeline of daylighting, natural ventilation and rainwater harvesting applications.

Roofing + Waterproofing, which was established as a Kingspan division in mid-year 2022, had no comparison from the previous year. No sales figures were provided by the company. However, the acquisition of CaPlast, a German roofing solutions business with annual revenues of approximately €75m, was reported to have completed on 21st April 2023.

Data + Flooring sales increased by 18% in the first quarter (+18% underlying). Datacentre solutions continue to advance and are offsetting the weakness in new office construction, Kingspan says.

The Kingspan board said that as current share trading on the London Stock Exchange is “negligible” it will delist and remain on the Euronext Dublin, where the majority of its share trading takes place.

Reflecting market uncertainty, the Group’s trading outlook is relatively short dated the company says. However, it expects a trading profit of just over €400m (£352m) for the first half of 2023.

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