Sales at Irish insulation specialist Kingspan Group rose 3 per cent in the first nine months of the year, buoyed by a 6 per cent rise in the third quarter that pushed it to €6.35 billion.
However, sales pre currency and acquisitions were down 4 per cent in the year to date and were in line with the third quarter of 2023, the company said.
In a trading update for the period to September 30th 2024, Kingspan said its insulated panels business saw sales improve in the third quarter, rising 1 per cent, but were down 2 per cent over the first nine months of its financial year. Although the Americas, France and Germany were showing signs of strength, eastern Europe remained challenging overall.
Sales of insulation, meanwhile, rose 18 per cent in the nine months to September, and 20 per cent in the third quarter as the acquisition of 51 per cent of Steico early in 2024 had an impact. Board sales fell in the third quarter, with Kingspan noting activity and margin in continental Europe was a particular challenge.
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Sales for its data solutions sector, which works with data centre clients, were up 29 per cent in the first nine months of the year, and 47 per cent in the third quarter. Its light and ventilation sector, meanwhile, saw sales drop 2 per cent in the nine-month period. Quarterly sales fared better, with sales up 1 per cent in the third quarter, and Kingspan noting the sector is a “growing opportunity” for the company worldwide.
Subdued activity in the European roofing sector hit sales in the roofing and waterproofing unit, with sales up 4 per cent over the period to September, and down 4 per cent in the third quarter. Kingspan has made acquisitions in this sector, including a majority stake in Nordic Waterprrofing in Europe and IB Roofing in the US, with the company noting divisional sales were now tracking €1 billion on an annualised basis.
Kingspan’s net debt at the end of September was €1.39 billion, with liquidity boosted by its recent €750 million public bond with a fixed annual coupon of 3.5 per cent.
The company said it was “difficult to look too far ahead”, citing economic and geopolitical “moving parts”.
“Whilst end markets have their obvious challenges the global backlog of orders is ahead year on year. In some markets we are seeing subdued near-term dispatches despite strong backlogs, which should augur well for the early part of 2025, albeit at the expense of 2024,” Kingspan said. “Whilst there is still some way to go in the current year, with the seasonally important fourth quarter remaining, we expect to deliver a full year trading profit broadly in line with the record level achieved in 2023. Notably, the group’s development pipeline remains strong.”
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