Turnover marginally down and profit slightly up at Irish firm

Income at products giant Kingspan once again topped €4bn in the first half, despite a slight decline on last year’s record interims. 

The Irish firm said turnover in the six months to June was down 2% to €4.1bn (£3.5bn) compared with the first half of 2022. Pre-tax profit was marginally up (1%) to €393m (£336m) from €388m (£331m). 

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The firm’s chief said he anticipated an increasingly stable supply chain as the year progressed

Its interim statement said the US market had performed “exceptionally well” and that insulated panels continued to deliver growth. 

“Europe has been more mixed with predominately weaker newbuild activity and refurbishment suffering somewhat due to the current interest rate environment,” it said. 

Chief executive Gene Murtagh said the firm was pleased with the results given the “testing environment” of high interest rates and “a degree of price deflation”.  

“This year the harsh reality of climate change has become an everyday reality for many, intensifying the urgency to deliver meaningful and increasingly smart decarbonisation solutions,” he continued, explaining Kingspan’s aim to drive sustainable building envelope solutions.  

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“Since period end, we agreed to acquire 51% of Steico, the world leader in wood-based insulation, adding to a growing bio-based portfolio including hemp and wood-wool acoustic insulation.  

“Along with our portfolio of LEC (lower embodied carbon) products, the first of which launched this year, we are now firmly established as a leader in the growing market for lower embodied carbon construction products.” 

The firm said its acquisition of Steico cost an initial €251m (£214m), which came after the end of the six months to June, during which Kingspan invested €271m (£231m) in acquisitions and capex overall. 

Murtagh said he anticipated an increasingly stable supply chain and pricing environment through the rest of the year.