Kingspan shares jump 3% as trading gets back on track

Kingspan chief executive Gene Murtagh. The company had a slight decline in sales in the first three months, citing "seasonal factors" for the sluggish start to 2024.

Shares in Kingspan jumped 3% as the international building products provider said that trading was on track in recent weeks despite a mixed performance earlier this year.  

In an update, the Cavan-headquartered manufacturer, which is best known for its insulation panels, said it had a slight decline in sales in the first three months, citing "seasonal factors" for the sluggish start to 2024. 

The group said stable pricing so far this year allowed for "positive" trading volumes, however, it noted that primary input costs "could rise again" in the near term. 

Kingspan shares have now gained 9% since the start of the year to value the group at €15.7bn. 

It also said in the statement that was issued to coincide with its annual general meeting that it had a "reasonable" start to the year despite the slow start. Total sales approached €2bn from January to March, down by 1% from the same period in 2023, and 8% lower based on an underlying measure. 

By market, the Americas overall matched last year’s strong start, while Western Europe was “seasonally subdued for the most part, and was slow to get going," with central and eastern Europe remaining “regionally tough”. 

However, the group said that the Middle East and India territories had posted strong sales growth.

Insulation sales

Sales of insulated panels were 6% lower, or 9% on an underlying basis, however, the company said that the growth in global sales was up in the mid-single digit compared to the same three months last year.

Insulation sales were 13% ahead from January to March, buoyed by the acquisition of a controlling stake in Steico in early January, the group said.

Underlying sales were 14% lower as with an annual reduction in pricing offsetting modest underlying growth in rigid boards. The company said that technical insulation, which experienced an expected slow start, has seen more momentum in recent weeks.

The group's net debt was €1.3bn at the end of March, reflecting an increase of €311m to take into account the acquisition of Steico.

Kingspan said its current liquidity was “very strong”, with €1.7bn in cash and undrawn facilities.

The board is to instigate a share buyback programme of 1.5m ordinary shares, in order to "offset dilution from share issuances".

"The group’s trading outlook as we move through the early part of the second quarter remains encouraging overall," the company said.