Kingspan Group PLC Trading Statement (5723R)
08 November 2021 - 6:00PM
UK Regulatory
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RNS Number : 5723R
Kingspan Group PLC
08 November 2021
Kingspan Group Plc
Trading Update
8 November 2021
Kingspan Group plc, the global leader in high performance
insulation and building envelope solutions, today issues a Trading
Update for the period to 30 September 2021.
Sales in the nine month period to 30 September were EUR4.72bn,
up 44% on the same period in the prior year, with sales growth of
50% in the third quarter. Underlying sales (pre currency and
acquisitions) were up 34% in the year to date and by 33% in the
third quarter.
Insulated Panels sales increased by 47% in the first nine months
and by 53% in the third quarter. Underlying sales were up 42% year
to date and up 43% in the third quarter. The sales performance
across each of the Group's key markets has evidently been strong
both year to date and in the quarter. Raw material inflation has
been extraordinary, with the associated recovery and the top line
boosted further by buoyant volume growth overall year to date.
Notably, however, order intake in the months of August and
September was lower than in the same two month period last year and
this trend has continued in the weeks since. The TeraSteel
acquisition completed earlier in the year is performing strongly.
Overall, the global Insulated Panels backlog was up 49% in volume
as at 30 September versus the same point last year.
Insulation Boards sales in the first nine months were up 51% and
up 78% in the third quarter. Underlying sales were up 32% in the
year to date and by 25% in the third quarter. Sales volumes overall
were in line with the third quarter of 2020 with the top line
reflecting mainly the higher cost of raw materials year on year.
Sales in Central and Eastern Europe, the Nordics and North America
were particular highlights in the third quarter although all key
markets performed well. Recent investments, such as our
Kooltherm(R) line in Sweden have been key in driving structural
adoption to high performance insulation with further developments
to come globally in 2022 and 2023. The Logstor acquisition, which
completed in June, is integrating fully to plan.
Light & Air sales in the first nine months were up 28% in
the year to date and by 12% in the third quarter. Underlying sales
were up 1% year to date and were level in the third quarter. Market
activity both in Europe and North America has been more subdued
than in other categories. The division has prioritised the
integration of acquisitions made in the current and prior year and
achieving category scale. 2021 is shaping up to be a further year
of progress in that context.
Data & Flooring sales in the first nine months were up 22%
and up 21% in the third quarter. Underlying sales were up by 23% in
the first nine months and were up 20% in the third quarter.
Datacentre demand globally is robust, offsetting a weaker office
market.
Water & Energy sales in the first nine months increased by
32% and up 24% in the third quarter. Underlying sales were up 18%
year to date and by 8% in the third quarter. The waste water and
rainwater harvesting categories continue to perform well.
Net debt at the end of September 2021 was EUR636m with a
cumulative acquisition spend year to date of EUR485m and organic
capital investment of EUR119m.
Looking ahead our backlog is strong although is reducing week on
week as sales activity outpaces new order placement. Underlying
panels order intake volume is down 10% in the third quarter versus
the same period in 2020. 2021 so far has been unusual and
characterised by order placement earlier in the year than is
typical as customers sought to get ahead of ongoing inflation and
availability pressures. It is likely what we are experiencing now
is a fallow period in order placement following that. Raw material
prices have been somewhat stable in more recent weeks, albeit at
record high levels and following a period of unparalleled
increases. There are no signs yet of any meaningful raw materials
deflation although should that come the impact would be negative.
We are acutely conscious of that.
The activity pipeline is generally encouraging particularly in
large scale logistics, data, technology and the EV automotive
sectors. These applications demand high energy efficient solutions,
not just on day one but over the lifetime of the building, with
Kingspan technology well placed in that environment. 2021 has still
to play out fully with the seasonally important fourth quarter
remaining and, accordingly, we expect to deliver a full year
trading profit in the region of EUR750m, significantly ahead of the
EUR508.2m recorded in 2020.
For further information contact:
Gene Murtagh, Chief Executive Officer Tel: +353 (0) 42 9698000
Geoff Doherty, Chief Financial Officer Tel: +353 (0) 42 9698000
Douglas Keatinge, Murray Consultants Tel: +353 (0) 1 4980300
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