Kingspan Group PLC on Friday reported higher profit and revenue in 2021 on ‘strong’ underlying demand, and said it agreed to purchase a French roofing firm for €550 million.
The Kingscourt, Ireland-based building materials company - focused on insulation and building envelopes - said pretax profit for 2021 totalled €689.0 million, up 50% from €459.7 million in the year before.
This was on revenue growth of 42% to €6.50 billion, from €4.58 billion the year prior.
Kingspan credited strong underlying demand last year but still noted that demand was ‘somewhat weaker’ in the fourth quarter.
Growing sales in the technology, online distribution, and automotive sectors were ‘instrumental’ in delivering the positive results, the company said.
Kingspan proposed a final dividend of 26.0 euro cents, reflecting a 26% increase from 20.6 cents the year before. This gave a total 2021 dividend of 45.9 cents
The company said it has started 2022 ‘well’, due to a strong order backlog at the end of 2021.
However, Kingspan warned that raw material prices remain at ‘elevated levels’ with no indication of this changing significantly yet.
‘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,’ Chief Executive Gene 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.’
Separately, Kingspan said that it signed an agreement to purchase Ondura Group from Paris-based private equity investment firm Naxicap Capital Partners ‘and others’ for €550 million. The amount is will be paid in cash. The agreement is in the form of an exclusive put option.
Ondura is a Suresnes, France-based provider of roofing membranes. It comprises Onduline SAS, Alwitra Holding, CB SA and their subsidiaries.
The French group generated revenue of €424 million with earnings before interest, tax, depreciation, and amortization of €63 million in 2021.
Ondura’s acquisition is expected to increase Kingspan’s Ebitda by roughly 7% on a full-year basis. Additionally, it is aligned with the Kingspan’s strategy to develop multiple technologies in roofing applications, it said.
Ondura is expected to serve as its ‘global platform’ for advancing these solutions.
Shares in Kingspan were up 1.2% at €92.68 pence each on Friday morning in London.
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