Kingspan's latest figures cap off a decade of growth
Kingspan capped off an impressive decade with their results for 2019 showing revenue and trading profit ahead of prior year by 7% and 12% respectively. Over the past decade, sales and trading profit for the Kingscourt based company grew in excess of fourfold and sevenfold respectively.
Group sales reached almost €4.7bn, and trading profit €497m. Despite the significant macro instability in a number of key markets the group performed well in the first half, but was weaker towards year end. Predictably, the UK was the most notable illustration of this.
“2019 was another year of solid growth for the business, ending a decade during which the company’s revenue increased fourfold, and trading profit increased sevenfold,” said Gene M. Murtagh, chief executive of Kingspan. “Performance this year was helped by increased penetration of our proprietary high-performance insulation products QuadCoreTM and Kooltherm. This structural shift in building techniques and materials used also drove our increased profit margins.
During the year they invested €305m in expansion worldwide. New facilities were either completed or commenced in Sweden, UAE, USA, the Netherlands and Brazil. Acquisition investment was €144m, comprising most notably Bacacier in France for €122m.
“Organic expansion is supported by new production facilities we have commissioned during the year in the US, Brazil and Sweden, and the level of demand building in Southeast Asia will soon justify investment in local manufacturing capacity there. We also continue to focus on acquisition opportunities, and have a healthy pipeline of targets under consideration.
“The uncertain economic outlook in our end markets has seen a slow start to 2020, however, Kingspan’s longer-term growth potential is supported by investment in innovation to ensure we have a product suite that continues to differentiate us from the competition, operated through a sustainable business model that is underpinned by the ambitious Planet Passionate targets we set in 2019.”