REG - Kingspan Group PLC - Trading Statement

KingspanAnnouncement

29/04/2022 07:00

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RNS Number : 7813J  Kingspan Group PLC  29 April 2022

Kingspan Group plc

Trading Update

 

29 April 2022

 

Kingspan Group plc, the global leader in high performance insulation and
building envelopes, is issuing this Trading Update today for the quarter ended
31 March 2022 ahead of our AGM at 10.00am.

 

The Group had a record first quarter. Group sales of €1.89bn for the
three-month period to 31 March were 47% ahead of prior year (+31% underlying).
Raw material inflation which had eased considerably at the turn of the year
has returned sharply over the past six weeks and the associated recovery
effort is ongoing.

 

By market during the first quarter, Europe was strongly ahead overall, the
Americas had a positive start to the year with a very encouraging pipeline in
North America and robust order intake activity recently in Latin America.
Australasia, which was subdued for most of last year, is looking better as we
move through 2022.

 

Insulated Panels sales were up 44% (+37% underlying). Sales were positive
across most significant markets worldwide with raw material inflation
necessitating significant pricing activity year on year. Order intake volumes
overall were broadly flat versus the first quarter of 2021 which itself was
very buoyant. The global backlog at the end of March was 19% ahead of the same
point last year in volume. QuadCore(TM) specification continues to advance
globally.

 

Insulation sales were up 72% (+22% underlying) in the first quarter. The year
on year sales comparison was helped considerably by Logstor, which was
acquired mid year in 2021 and which is trading very well with district heating
solutions a particular highlight. Much of the underlying sales growth
reflected inflation led pricing with volumes broadly in line with a strong Q1
2021. Volumes grew strongly in Australasia which together with growth in
Central and Eastern Europe offset modest decreases elsewhere against a strong
comparative.

 

Light & Air sales were up 41% (+16% underlying) in the first quarter. The
underlying sales performance was positive across all key markets with momentum
in order intake and progress in margins. The pipeline in both daylighting and
associated natural air ventilation applications is encouraging.

 

Data & Flooring sales increased by 32% in the first quarter (+26%
underlying). Datacentre solutions continue to grow and are offsetting the
anticipated weakness in new office construction.

 

Water & Energy has started the year well with sales 24% ahead in the
first quarter (+11% underlying) albeit margins have seen some pressure.
Wastewater and rainwater solutions are an increasing area of opportunity.

 

Net debt as at 31 March 2022 was €905m and reflects an acquisition spend of
€67m in the first quarter. Working capital levels remain elevated as we
continue to hold higher than average levels in a choppy supply chain
environment. The Group's current liquidity is very strong with in excess of
€2.1bn in cash and undrawn committed facilities including €800m of new
additional term facilities agreed on 13(th) April.

 

The Group's trading outlook for the second quarter is positive with a strong
order backlog on hand and decent activity in most end markets. Raw material
inflation remains an issue to be firmly managed, coming on the back of a
highly inflationary year in 2021. As previously highlighted, margins year on
year are likely to see a lag associated with this. In addition to the €800m
committed on acquisitions announced earlier in the year, the Group's
development agenda and pipeline are strong, although nothing can be certain on
that front. The acquisition of Troldtekt has received competition clearances,
and is expected to complete imminently.

 

Overall, given ever increasing concerns around energy conservation,
availability and climate change, Kingspan's distinctive range of solutions and
Planet Passionate agenda positions the Group favourably for the years ahead.

 

Kingspan's Annual General Meeting will take place at 10.00am today.

 

For further information contact:

 

Gene Murtagh, Chief Executive Officer Tel: +353 (0) 42 9698016

 

Geoff Doherty, Chief Financial Officer    Tel: +353 (0) 42 9698016

 

Douglas Keatinge, Murray Consultants   Tel: +353 (0) 86 0374163

 

 

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