Record turnover for insulation maker Kingspan as it passes costs on to customers

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Insulation maker Kingspan’s revenue rose 42% to a record 4.2 billion euros in the first half of June as higher prices and acquisitions offered a bonus to shareholders.

The company announced that it had appointed former CRH and Bank of Ireland executive Senan Murphy as an independent non-executive director. Mr Murphy, who does not hold any Kingspan shares, previously held senior positions at Ulster Bank, Airtricity and GE.

Increased sales of insulating panels, insulation and district heating, as well as an entry into the waterproofing and ‘natural’ insulation market, generated exceptional results.

In its half-year results on Friday, the Cavan-based company said it passed on “an unprecedented level of raw material increases received in 2021”.

Trading result increased by 32% to 434.2 million euros, while profit before financial charges, income taxes, depreciation, amortization and non-trading items increased by 30% to 512.2 million euros .

This led to a rise in basic earnings per share of 29% to 170.6 cents.

Shareholders will receive an interim dividend of 25.6 cents, also up 29% and in line with policy guidance.

Insulation board sales increased 39%, with insulation sales increasing 69% due to higher prices and acquisitions.

A new roofing and waterproofing business division – with projected annualized revenue of more than 500 million euros – contributed to the positive valuation of the company.

Kingspan acquired Belgium’s Derbigum in June and cleared the purchase of global waterproofing company Ondura Group in August, while it took a 24% minority stake in Nordic Waterproofing the same month.

It also acquired the Danish manufacturer of natural sound insulation Troldtekt.

Kingspan entered the district heating market last year, with full year 2022 order intake expected to be 50% higher than 2021.

A total of €522 million was invested in new business and capex in the first six months of the year.

Kingspan also expects organic growth over the next five years, with 25 new production lines and a 200 million building technology campus in Ukraine.

However, Kingspan said that while deliveries across most businesses were “solid” in the six months to June, “the reverse was the case for incoming orders”.

“Despite a challenging trading environment, Kingspan delivered record half-year results, with revenues exceeding €4 billion for the first time,” Kingspan chief executive Gene Murtagh said. “We have been able to meet significant input cost increases with only a modest impact on margins.

“Looking forward, we maintain the outlook announced in our June business update, but we are confident in the long-term demand for the energy-efficient solutions we offer.

“While inflationary pressures have eased in recent months, the backdrop of energy supply constraints during the winter months in Europe will be something we will watch closely.”

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