Kingspan FY profits rise even as revenue dips

Irish building materials group Kingspan posted a jump in profit on Friday even as revenues dipped.

In the year to the end of December 2023, trading profit rose 5% to €877m, while basic earnings per share were 7% higher at 352.3 cents. Earnings before interest, tax, depreciation and amortisation ticked up to €1.07bn from €1bn a year earlier.

The profit increase came despite a 3% decline in revenue to €8.1bn. Kingspan said that while some markets displayed volume pressure, the main reason for the revenue drop was the knock-on deflationary impact of raw material pricing in the early part of the year.

Kingspan declared a final dividend per share of 26.6cents, up from 23.8 cents in 2022 and giving a total dividend for the year of 52.9 cents, versus 49.4 cents a year earlier.

The company said the trading picture in end markets in the second half was similar to that of the first, where patterns of activity around the globe varied "significantly".

A poor start to the year in Germany, the Nordics and central Europe persisted in the latter part of the year. Meanwhile, France - Kingspan’s largest market - remained positive and the Americas performed "exceptionally well", it said.

Chief executive Gene Murtagh said: "Despite markets and geographies moving at different speeds, Kingspan was pleased to deliver another year of record profits and record cash generation whilst continuing to innovate and diversify our revenue base.

"Given varying activity levels it is too early to provide any meaningful guidance on outlook, not least as seasonal factors have hampered early progress in some markets. However, given our robust balance sheet, strong development pipeline, strong structural demand for energy efficiency and the ever increasing and obvious impacts of climate change, we expect 2024 to be a year of continuing strategic and operational progress for Kingspan."

The results came alongside news that Kingspan has agreed to buy the stonewool insulation business and assets of Germany’s Bachl.

No financial details were disclosed but the company said the deal is expected to complete by the end of March.