Kingspan profits and sales rise but building insulation group warns raw material prices will persist for the rest of the year
- The group, which is based in Ireland, enjoyed strong profit and revenue growth
- It is upbeat about the year ahead, but said raw material prices remain high
- Company also announced new acquisition deal to buy Ondura Group
Kingspan Group saw its profits and sales rise over the past year, and despite a slower fourth quarter, remains upbeat about its outlook for 2022.
The building and insulation materials company based in Ireland said revenues rose 42 per cent to €6.5billion last year, as it also announced a €550million deal to buy French roofing membranes provider Ondura Group.
Kingspan said the acquisition of Ondura, which is expected to complete in the second half, will boost earnings by around 7 per cent a year.
On the up: Kingspan Group saw its profits and sales rise over the past year
The company enjoyed a 49 per cent rise in trading profit to €755million over the past year, with basic earnings per share rising 48 per cent to 305.6 cents.
Acquisitions contributed 12 per cent of sales growth and 11 per cent to trading profit, Kingspan said.
The group announced a final dividend per share of 26 cents, giving a total dividend for the year of 45.9 cent.
At year end, Kingspan’s net debt stood at €756.1million, against €236.2million the year before.
Boss Gene Murtagh, said: ‘The business delivered an exceptional performance last year, with our growing sales to customers in the technology, online distribution, and automotive sectors instrumental in the results.
‘Whilst dramatic input price inflation was a major feature, our cost recovery efforts helped ensure continued margin improvement.
‘Despite a slower fourth quarter, with a large order backlog we are cautiously optimistic about the outlook for this year, whilst mindful of the high bar in comparison with last year’s performance.
‘High energy costs and supply threats around the world are a catalyst for a focus on conservation measures, which is likely to accelerate the demand for lower energy solutions which we believe will be supportive of demand for our products.’
The company said it spent over €500million in acquisitions in 2021 and since year-end has committed a further €800million 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 backlog at the end of last year, although it is still early days.
‘Raw material prices which saw steep increases through much of 2021 remain at elevated levels with no evidence yet of this situation changing significantly.
‘Our trading 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.’