Proactive Investors - Kingspan Group PLC shares warmed up nicely on Friday morning after it reported record results on the back of strong insulation sales, which are likely to have benefited from higher demand amid high energy prices and the benefits being highlighted by road-blocking protestors.
Group revenues were up 28% to €8.3bn for the calendar year, ahead of forecasts, while trading profit was up 10% to €833mln, in line with estimates as profit margins were squeezed.
Acquisitions contributed 9% to sales growth and 8% to trading profit growth in the year.
A final dividend per share of 23.8 euro cents (c) was down on the 26c a year earlier, though the total dividend for the year of 49.4c was up from 45.9c.
Insulation panels sales rose 23% to €5.2bn and profit 6% to €549mln despite margins shrinking, with the launch of a new PowerPanel product being hit by “supply chain consistency and reliability” but a “ground-breaking solution” that is expected to “feature prominently over the longer term”.
Non-panel insulation sales rose 40% to €1.7bn, boosted by price rises and acquisitions, with profits up 13% to €165mln in spite of margins shrinking here too.
Acquisitions included Danish pipe insulation specialist Logstor, which led to strong growth in district heating, a low-carbon community heating option popular in Scandinavia and still in the early stages in the UK and Ireland.
The Irish-headquartered group reported “significant progress” after entering the bio-based insulation market with Denmark-based Troldtekt.
Kingspan said it expects to grow Logstor capacity by 50% over the next three years and for Troldtekt 60% over three years.
On current trading and the outlook, management expects trading profit in the first quarter to be in line with the prior year, also highlighting the strong comparative performance that it will face in the second quarter.
Broker Shore Capital said it expects second-half profits to be above the previous year, so is keeping its forecast of a 1% rise to €840mln for the year.
The shares rose 6.4% to €63.60.