Kingspan shrugs off inflation pressures with strong results and return to acquisition trail, but ‘cautious’ on future

The Cavan-headquartered international building insulation business has reported a near 50% increase in trading profit. File Picture: Leah Farrell/RollingNews.ie

Specialist building services group Kingspan is back on the acquisition trail, having agreed a €550m purchase after posting a strong set of annual results, showing it is continuing to cope with high cost inflation.

The Cavan-headquartered international building insulation business has reported a near 50% increase in trading profit, to €755m, for 2021; with revenues surging by 42% to just under €6.5bn. The group finished last year with an after-tax profit of €571m, which was 48% ahead of the previous year.

All this came about against a backdrop of “unprecedented” raw material cost inflation.

“Whilst dramatic input price inflation was a major feature, our cost recovery efforts helped ensure continued margin improvement,” said Kingspan chief executive Gene Murtagh.

On the acquisition front, Kingspan has agreed the €550m purchase of Ondura Group – a French roofing solutions company – from French private equity house Naxicap Capital Partners and other owners.

Combined acquisitions contributed 12% to Kingspan’s sales growth last year and represented 11% of its profit growth. Kingspan spent €714m on acquisitions and investments last year.

Mr Murtagh said growing sales to customers in the technology, online distribution and automotive sectors were “instrumental” in Kingspan’s strong results last year.

He said the company is “cautiously optimistic” about the outlook for this year and “mindful” of the high bar in terms of performance comparison with last year.

“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 said.