Kingspan profits up by almost half despite 'dramatic' input price inflation


Kingscourt based Kingspan has reported a big jump in profits and revenues for 2021 despite the impact of "dramatic" input price inflation.

The insulation and building materials manufacturer said its profit after tax rose by almost half (48%) to €571m from €385m in 2020; while revenues for the year increased by 42% to €6.497 billion from €4.576 billion.

The company said its board has proposed a final dividend of 26 cent per ordinary share, following an interim dividend of 19.9 cent per ordinary share. This brings the total dividend for 2021 to 45.9 cent compared to 20.6 cent for 2020.

Gene Murtagh, Kingspan's chief executive, said the business delivered an "exceptional performance" last year, with growing sales to customers in the technology, online distribution, and automotive sectors instrumental in the results.

"Whilst dramatic input price inflation was a major feature, our cost recovery efforts helped ensure continued margin improvement," Mr Murtagh said.

Kingspan said that 2021 saw "extraordinary volatility" in supply chains and wider society.

It said while this dynamic created significant challenges, demand remained strong during the year, although it weakened slightly in the last quarter.

The company said its raw materials also saw dramatic price inflation, and it was necessary to pass on about €700m in cost increases to customers.

Kingspan reported strong activity across most of its markets in both residential and industrial construction, newbuild and RMI.

It noted that order intake trends in the first half eased off in the second half of the year, but the Insulated Panels global order backlog still finished the year ahead by 28% in volume.

North and South America, France and Britain were among the strongest export martets with Kingspan's growing presence in the tech, online distribution and automotive segments instrumental to delivering this performance.

The firm also highlighted how the demand for more efficient materials and methods of construction is gaining momentum.

"With the prevailing energy cost and supply threats around the world, it is likely that the drive toward conservation will be accelerated," the company added.


During 2021, Kingspan invested some €714m on acquisitions, capital expenditure and financial investments.

Mr Murtagh said the company continues to drive expansion through acquisitions, with over €0.5 billion invested in buying new businesses during the year.

The largest of these deals was for Logstor Group, a European based provider of highly insulated district heating infrastructure, which was bought in June for €245m.

Other deals completed last year included an acquisition of TeraSteel in Romania and Thermakraft (insulation) in Australia and New Zealand; as well as securing a 51% take in Bromyros, an insulated panel manufacturer in Uruguay.

Kingspan also said today that it has signed an exclusive put option agreement to buy France-based Ondura Group from Naxicap Capital Partners and others for €550m.

Ondura makes roofing membranes and associated roofing solutions. It reported a profit of €55M in 2021 and has 14 manufacturing sites and a distribution network in 100 countries.

Mr Murtagh says organic growth of the company has also been strong.

"We opened five new manufacturing facilities or production lines this year, and plan for a further 25 over the next four years. Since year end we have committed a further €800m on three transactions, subject to customary approval, that create exciting new global platforms for further development," said the Kingspan CEO.

Kingspan also became a founding investor in the ground breaking H2 Green Steel in Sweden that aims to become the world's first zero carbon steel facility. In the second half of the year, the firm purchased California based Solatube International.

Mr Murtagh also said the company has made good progress on its Planet Passionate targets, achieving an absolute reduction in Scope 1 and 2 GHG emissions for the second year of the programme, with a 4.3% reduction achieved this year.

"We will also implement a €70 per tonne internal carbon charge from 2023 to accelerate the pace of decarbonisation across our global business," he added.


"Despite a slower fourth quarter, with a large order backlog we are cautiously optimistic about the outlook for this year, whilst mindful of the high bar in comparison with last year's performance," Mr Murtagh said.

"High energy costs and supply threats around the world are a catalyst for a focus on conservation measures, which is likely to accelerate the demand for lower energy solutions which we believe will be supportive of demand for our products," he added.