Insulation and building materials manufacturer Kingspan has announced record revenue for the first half of 2024, despite experiencing declines in both trading profit and profit after tax.
The company reported a revenue of €4.2 billion for the six months ending in June, marking a 2% increase compared to the same period last year. However, profit after tax fell to €310.2 million from €324 million, and trading profit decreased by 3% to €422 million.
Kingspan attributed the sluggish start to the year to lower sales volumes in the initial months, although there was a notable improvement as the year progressed. The company’s largest business segment, insulated panels, saw a significant increase in order intake compared to the first half of 2023, which is expected to enhance trading in the latter part of the year. Despite this, sales of insulated panels dropped by 4% in the first half of 2024.
The company’s revenue growth was affected by lower year-on-year pricing, reflecting changes in raw material costs. 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 towards the second half.”
In the first half of 2024, Kingspan invested €714.4 million in capacity expansions and acquisitions globally. The largest investment was €412.2 million for a 51% stake in Steico. The company’s other divisions showed varied performance: Insulation sales increased by 16%, Data + Flooring sales rose by 19% to €226 million, and Roofing + Waterproofing sales grew to €257 million from €239 million the previous year. However, sales in the Light, Air + Water division experienced a slight decline to €457 million.
Kingspan also highlighted its progress in sustainability, noting a 75% reduction in emissions in its underlying business since 2020 as part of its Planet Passionate agenda. The company has also become the first in its industry to adopt ISO 37301, the leading global compliance management system, with plans to have 85 sites fully certified by the end of the year.
Looking ahead, Murtagh expressed confidence in the company’s future performance. “Given our strong order book, advances in US and emerging markets, and growing contributions from acquisitions like Steico, we anticipate better performance in the second half of the year with trading profit growth expected for the full year,” he said.