Kingspan Group PLC Trading Statement (7813J)
April 29 2022 - 2:01AM
UK Regulatory
TIDMKGP
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 EUR1.89bn
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 EUR905m and reflects an
acquisition spend of EUR67m 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 EUR2.1bn in cash and
undrawn committed facilities including EUR800m 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 EUR800m 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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