Record revenues at Kingspan but profits drop by three per cent

Dividend proposed for shareholders; nine new acquisitions reported

Revenues at Kingspan are up two per cent to a record €4.2bn in the first half of the year in what the firm's describing a "resilient performance" in "tough end markets".

The insulation manufacturer issued its half-yearly financial report this morning.

It also shows a three per cent drop in trading profit down to €422M; while EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) is up two per cent to €536M.

The Kingscourt headquartered firm also announced an interim dividend for shareholders of 26.3 cent per share in line with the 2023 interim payment.

It will be paid on October 11, 2024, to shareholders on the register on September 6, 2024.

Gene Murtagh, Chief Executive of Kingspan commented: “Kingspan was pleased to deliver a resilient first half performance, with revenues reaching an all-time high despite some tough end markets.

"A sluggish but improving start to the year has given way to strong order intake at mid-year and we expect full year growth to be more heavily weighted to H2."

Kingspan says that a Strong order intake in insulated panels should support better trading in the second half of the year.

Sales in this area of the business recorded a four per cent decrease with positive volumes overall offset by lower year on year pricing reflecting raw material pass through.

The company is also reporting that its direct greenhouse gas emissions have reduced by 75% since 2020 in its underlying business.

“We continue to deliver on our Planet Passionate agenda by offering compelling new solutions to decarbonise the built environment, whilst internally achieving a 75% reduction in emissions in our underlying business since 2020. We are also very pleased to be the first in our industry worldwide to adopt and rollout ISO 37301, the leading global compliance management system and we expect to have 85 of our sites fully certified by current year end," said Mr Murtagh.

Group free cashflow has dropped to €103.6m compared to €356.9m in the first half of 2023.

However, the total capital invested in the the first half of 2024 by Kingspan amounted to €714.4m- €164.5m in organic projects and €549.9m in nine acquisitions. The largest was the purchase of 51% of Steico in Germany, the world’s largest timber-based insulation provider.

By market, the Americas performed well as penetration of Kingspan technology continues to increase. Europe was more mixed with France and Belgium delivering solid activity, although markets were relatively weaker in Germany, the Nordics and Britain.

Mr Murtagh's positive for the company's performance going forward.

“Given our strong order book, continuing advances in our US and emerging markets, growing contributions from acquisitions like Steico and from our rich innovation pipeline, we expect to deliver a better performance in the second half with trading profit growth anticipated for the full year."