Kingspan Turnover Tops £4 Billion for First Time

KINGSPAN HAS reported a revenue topping the €4 billion threshold for the first time, seeing an increase of 42% in the past 6 months to achieve €4.2bn.

In its half-yearly financial report to 30 June 2022, the manufacturer of insulation and building envelope products logged a trading profit of €434.2m also up by 32% and EBITDA of €512.2 million.

Kingspan shows a record performance overall but with orders slowing in quarter two. Nevertheless, Kingspan reports its global insulated panels orders were precisely 50% of the total volume for the full year of 2021.

The company attributes its increased turnover to its exposure to high growth end markets and a worldwide move towards more energy conscious buildings. It says the extraordinary levels of price inflation played a part as the company passed on raw material price increases of last year. It says the raw material market has become less hostile in recent months but that it remains to be seen how this plays out particularly in a context of energy supply constraints in Europe.

The sales value of insulated panels rose by 39% with a 63% increase in global sales volume of the company’s QuadCore brand. Insulation sales were strongly ahead by 69%, driven by inflation and acquisitions the company says.

Roofing + Waterproofing

In its Roofing + Waterproofing category, Kingspan has established a global platform with annual revenue expected to exceed €500m. In the half year period the company has invested a total of €522m across acquisitions, the purchase of minority interests and capex, the largest of which was Troldtekt, a natural acoustic insulation producer based in Denmark. The move marks Kingspan’s first step into ‘natural insulation’ in which it expects to make further ‘advances’. Other recent acquisitions included Derbigum in June, the Ondura Group, expected to complete shortly, and a minority stake of 24% in Nordic Waterproofing.

Technical insulation and roofing have now ‘significantly’ increased the Group’s exposure to RMI, the company says, while Light + Air has made ‘significant progress’ on its margins.

Data + Flooring show a strong pipeline in the medium term while Water + Energy margins are showing a recovery following a lag in the first half of the year.

Gene Murtagh, Chief Executive of Kingspan said, “Despite a challenging trading environment Kingspan delivered record half year results, with revenues over €4bn for the first time. We have been able to navigate large input cost increases with only modest margin impact.

“We invested €522m in new businesses and capex in the period, including significant progress executing on our strategy of developing a new business division focussed on roofing and waterproofing solutions. We also continue our organic expansion plans, with the intention to build 25 new production lines in the next 5 years, including our plans to invest €200m in a new Building Technology Campus in Ukraine.

“Looking forwards we retain the outlook flagged in our June trading update but are confident in the long term demand for the energy efficient solutions we deliver. Whilst inflationary pressures have eased in recent months, the context of energy supply constraints over the winter months in Europe will be something we will be closely monitoring.”

Sustainability

In Kingspan’s ‘Planet Passionate’ programme, last year the company announced its greenhouse gas emissions were being revised to align with the global 1.5⁰C rise in global temperature target. Setting a series of goals for carbon emissions, energy, circularity and water Kingspan will be implementing a €70 per tonne internal carbon charge from 2023.

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