Kingspan's sales surge on acquisition and weak euro

Building materials company Kingspan Group said sales in the first nine months of the year increased sharply on the back of acquisitions and a weak euro.

In the nine months to 30 September, the Ireland-based group said sales surged 44% year-on-year to €2bn (£1.4bn), driven higher by a weak euro and by a number of acquisitions the company completed in the period.

On a constant currency basis, sales rose 34% year-on-year, the group said adding that total sales in the third quarter rose 54% from the corresponding period in 2014.

Excluding currency movements and acquisitions, sales rose 3% year-on-year in the first nine months of the year and in the third quarter.

Sales in North America were the main driver of growth, while European sales remained steady and the company reported a slight decline in the UK and Australian markets.

Among individual divisions, sales in the insulated panels soared 54% in the first nine months of the year, while environmental sales and access floors rose 8% and 17% respectively in the third quarter.

Kingspan added it expects its trading profit for the full year to grow 68% year-on-year to €250m, although it warned the performance for the fourth quarter remained unpredictable.

Kingspan shares were up 3.99% to 23.19p at 1018 GMT on Monday.