Revenue Jumps 42pc to €6.5bn at Kingspan - Construction Network Ireland - Construction Network Ireland

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Published in Industry on 18/02/2022

Revenue Jumps 42pc to €6.5bn at Kingspan

CNI reports

Kingspan has reported a 42pc jump in revenue to €6.5bn last year.

The insulation and building envelope solutions company saw its trading profit increase 49pc to €755m, according to annual results from the group.

“The business delivered an exceptional performance last year, with our growing sales to customers in the technology, online distribution, and automotive sectors instrumental in the results,” Gene M. Murtagh, CEO of Kingspan, said.

“Whilst dramatic input price inflation was a major feature, our cost recovery efforts helped ensure continued margin improvement,” he added.

Acquisitions contributed 12pc to sales growth and 11pc to trading profit growth in 2021. Last year Kingspan spent €540.2m on M&A.

During the year the company experienced “unprecedented” raw material inflation with strong price recovery effort.

In its Insulated Panels and Insulation division, the company had volume growth of 13pc and 11pc respectively.

Insulated Panels sales increase of 45pc driven by “strong momentum generally in construction activity, raw material led price growth further enhanced by strong demand in high growth sectors.”

The company’s year-end order backlog volume in this division was 28pc ahead of the same point in 2020.

Insulation sales increased 50pc due to strong demand in key markets and inflation recovery on pricing.

Meanwhile, the group’s Water & Energy sales increased 29pc, which, the company said, reflected a strong performance across all key markets, with the exception of Australasia.

At the end of 2021 the company had net debt of €756.1m up from €236.2m at the end of 2020.

The company has also signed an agreement to buy French roofing business Ondura Group for €550m.

Kingspan is buying the company from Naxicap Capital Partners and others.

Ondura Group, which includes companies Onduline SAS, Alwitra Holding, CB SA and their subsidiaries, is a global provider of roofing membranes and associated roofing solutions headquartered in France.

It has 14 manufacturing sites and a distribution network in 100 countries worldwide.

In the 12 months to 31 December 2021 Ondura had un-audited consolidated revenues of €424m, with earnings before interest, taxation, depreciation and amortisation (EBITDA) of €63m.

Ondura’s trading profit at the end of 2021 was €55m. The group’s gross assets at the end of December 2020 were €387m.

The total consideration for the businesses will be €550m (debt free, cash free) payable in cash on completion, Kingspan said.

Signing of the share purchase agreement is subject to standard French employee procedure and the customary regulatory clearances, and is expected to complete in the second half of this year.

The existing Ondura management teams will continue to work for the businesses.

The purchase of Ondura is expected to increase Kingspan Group EBITDA by approximately 7pc on a full year basis, the company said.

“The acquisition is fully aligned with Kingspan’s long-stated strategy to develop multiple technologies in roofing applications and will serve as our global platform for advancing these solutions,” Kingspan said.

Looking forward, the company said it is “cautiously optimistic” about the outlook for this year.