Insulation and building envelope manufacturer Kingspan said on Monday that sales rose by 44 per cent in the nine months to September 30th, on the back of a strong contribution from acquisitions. The group is forecasting full year trading profit of €250m.
In the nine months to September 30th, sales rose by €2bn, up 44 per cent on the same period in 2014, or by 34 per cent pre currency. The strong growth came on the back of strong sales in Q3, boosted by the contribution from acquisitions with sales up 54 per cent (+46% pre currency). Underlying sales, pre currency and acquisitions, were up 3 per cent both in the year to date and third quarter.
“Profitability has benefitted from strong operating leverage, and has been further complemented by unusually favourable exchange rates and a positive input cost environment,” Kingspan said in a statement.
The group’s insulated panel division saw sales increase by 54 per cent in the nine months, and by 73 per cent in Q3. Underlying sales were 4 per cent ahead year to date. Kingspan said that the UK continues to perform solidly, “albeit with some moderation since September”, with sales steady in mainland Europe and strong growth in North America.
Insulation board sales in the first nine months were up 39 per cent and by 38 per cent in Q3, as Kingspan noted that “the pace of sales growth in certain segments of the UK market has moderated since late summer and we have seen a decline in sales in Australia in a tighter market”.
Environmental sales in the first nine months and in the third quarter were up 8 per cent, but down 1 per cent, while access floors sales in the first nine months increased by 17 per cent.
Kingspan said its net debt at end September 2015 was €4 13.8m, € 306.1m higher than at the same point in 2014 due to acquisition activity year on year. Net debt at year end is forecast to be in the region of €380m.
Looking ahead, Kingspan said it expects to deliver full year trading profit of approximately € 250m (+68% versus 2014), if current exchange rates are to prevail.
“ We are also mindful that the first quarter of 2016 will include the full weakness of the winter season for the businesses acquired this year, and which were not consolidated in the group’s results in the early part of 2015,” the group said.
