HomeBussinessKingspan reports revenue of €2bn in ‘sluggish start’ to 2024

Kingspan reports revenue of €2bn in ‘sluggish start’ to 2024


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Kingspan chief executive Gene Murtagh

Insulation giant Kingspan has reported revenues of around €2bn for the first three months of 2024, down 1pc from the same period last year.

The Cavan-headquartered company pointed to a “sluggish” start to the year as a result of seasonal factors. In a trading update published today, the group noted that pricing remained stable since the beginning of this year but was lower year-on-year as a result of a decline in raw material prices.

However, Kingspan said that short-term input cost increases remained a possibility.

The Americas recorded the strongest start to the year, while Western Europe was described as “seasonally subdued” for the majority of the first quarter.

Central and Eastern Europe remained “tough”, while Kingspan pointed to strong sales growth in the Middle East and India.

Insulated panels sales dropped by 6pc compared to the same period in 2023, although global sales volume rose in the period. Order intake also grew across the three months.

Insulation sales increased by 13pc year-on-year following the acquisition of a controlling stake in Steico, a provider of wood fibre insulation materials.

Underlying sales in this area were down 14pc as a fall in pricing offset growth in rigid board sales.

Sales in the group’s light, air and water division were down 6pc, with majority of demand coming from the United States.

Roofing and waterproofing sales were up 10pc across the three months, while data and flooring sales grew by 14pc in the period. This was largely driven by growth of artificial intelligence, according to the group.

Kingspan said it expects to deliver a similar first half trading profit as it did in 2023. Trading profit rose to €435.5m in the first six months of last year.

Order intake volumes so far in 2023 have been stronger than the same months last year, according to Kingspan. It also expects pricing to match 2023 levels by the mid-year period.

Kingspan recorded a trading profit of €877m last year, while revenues for the year were down 3pc to €8.1bn.

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