Irish insulation giant Kingspan delivered a record trading performance in the first six months of the year with revenue and trading profit surging ahead of last year by 42 per cent and 32 per cent respectively, its interim report show.
The report, which covers the six-month period ended June 30th, 2022, shows revenue exceeded €4.1 billion for the first time, with earnings before interest, taxes, depreciation, and amortisation (EBITDA) and trading profit reaching €512.2 million and €434.2 million.
Group operating profit after amortisation increased by 28 per cent to €405.2 million, which was up from €316.5 million the year before.
Profit after tax was €319.9 million compared with €246.7 million, driven in the main by the increase in trading profit.
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Basic earnings per share for the period was 170.6 cent, representing an increase of 29 per cent on the first half of 2021.
Net debt increased by €450.5 million during the first half of the year to €1.2 billion. The group recorded a non-trading charge of €16.1 million in respect of its net loss on the complete divestment of its Russian operations.
Kingspan said its exposure to high growth end markets and applications and a “concerted worldwide move” towards more energy conscious buildings played a role in driving its performance over the period.
It described inflation levels as “extraordinary”, and said these “also had a meaningful influence” as it passed on an “unprecedented level” of raw material increases received during 2021.
However, the group said certain pockets of activity experienced a lag in the recovery effort.
“The raw material backdrop has become less hostile in recent months,” it said. “It remains to be seen how this plays out particularly in a context of likely energy supply constraints in Europe in the months ahead.”
The company invested a total of €522 million across acquisitions, the purchase of a minority interest, and capital expenditure, the largest of which was Troldtekt, a natural acoustic insulation producer based in Denmark.
Organically, within the next five years, it has internal requirements for more than 25 new production lines worldwide.
Included in this is its recently announced intention to invest €200 million on a building technology campus in Ukraine to meet demand in the wider Central and Eastern European region.
It said the site search is “nearing completion” and a full design of the complex is in preparation.
Kingpsan chief executive Gene Murtagh said inflationary pressures have eased in recent months but that the winter could be challenging.
“Despite a challenging trading environment Kingspan delivered record half-year results, with revenues over €4 billion for the first time,” he said. “We have been able to navigate large input cost increases with only modest margin impact.
“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.”
The board has declared an interim dividend of 25.6 cent, which was up from 19.9 cent last year, payable on October 7th to shareholders.
