Kingspan has reported a 32% rise in its trading profits in the first half of 2022, following a surge in revenues. The building and materials group had a trading profit of €434.2m in the first six months of the year, up €105.3m on the same period of 2021.
That is ahead of the forecast the company made in June. It came as revenues at the company hit €4.15bn in the period – an increase of 42% year-on-year.
The company said acquisitions contributed 12% to its sales growth and 13% to its higher profits.
Kingspan CEO Gene Murtagh comments: “Despite a challenging trading environment, Kingspan delivered record half-year results, with revenues over €4bn for the first time. We have been able to navigate large input cost increases with only modest margin impact. We invested €522m in new businesses and cap-ex in the period, including significant progress executing our strategy of developing a new business division focused on roofing and waterproofing solutions.”
Gene Murtagh also said that the company plans to build 25 new production lines in the next five years, including a €200m facility in Ukraine, adding that the company was maintaining its outlook for the entire year and was confident of demand for its energy-efficient products.
But he added there that there continued to be challenges that could impact the business in the short term.
“Whilst inflationary pressures have eased in recent months, the context of energy supply constraints over the winter months in Europe will be something we will be closely monitoring,” Gene Murtagh concluded.