Kingspan revenue breaks €3bn mark as profits jump 33pc

Cavan-based insulation giant Kingspan made a €341m profit last year as its revenue jumped 12pc to €3.1bn, the company reported this morning. The profit was 33pc higher than in 2015

Kingspan, whose chief executive is Gene Murtagh, said that it had experienced a strong performance in the UK last year, despite June’s Brexit vote, and that “clear recovery” is evident across much of western Europe. It added that business was “more subdued” in the United States during the second half of 2016.

Mr Murtagh said 2016 had been another “record year” for the group.

“Through our organic initiatives and acquisition strategy we are developing a truly global business well placed to capitalise on the transition towards a lower energy future,” he said.

“We are encouraged about the outlook for the first half of 2017, with the current order book solidly ahead of the same point last year. With low debt levels and strong cash generation we retain the flexibility to invest in new opportunities as they present themselves,” Mr Murtagh added.

In its insulated panels business, revenue was up 17pc at €2.07bn, with organic revenue rising 5pc. The unit made a €228m profit, 38pc higher than in 2015.

Kingspan’s insulated boards division reported revenues of €688m, which was 4pc higher on 2015. Organic revenue was 7pc higher. Profits at the unit rose 28pc to €78.5m.

Davy Stockbrokers analyst Flor O’Donoghue said this morning that Kingspan faces “near-term challenges” – notable the need to manage rising raw material costs. However, he said he remains “very optimistic” about Kingspan’s prospects.

“These include a vastly extended operating footprint in recent years; the ability to disrupt in newer markets and gain share; a track record in innovation and product development; and what remains a very healthy financial position,” he said.
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