Both Kingspan’s profits and sales rose in the first half of 2021 despite pressures from material shortages and price inflation, the company’s latest financial results show.
Pre-tax profit increased 67% year over year, with the company posting a $ 297 million profit for the first half of this year.
Income was also higher than the first half of 2019, when the company posted a pre-tax profit of 209 million euros (255 million pounds sterling).
Sales rose to 2.9 billion euros (2.5 billion pounds) from 2.07 billion euros (1.8 billion pounds) in the same period last year – an increase of 41%.
The company, which completed a business review earlier this year following the Grenfell investigation, said the first half of 2021 had been an “exceptional time” and “seen unprecedented demand coupled with increasingly acute supply constraints and” yet another unprecedented inflation curve “.
The latter point meant that price management activities should have offset well over 600 million euros (£ 515 million) in cost increases during the year.
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Gene Murtagh, Kingspan CEO, said, “Growth in the first half of the year was remarkably strong, with sales and trading profits at record levels, driven by strong demand and a global recovery in the construction sector.
“Despite the inflation of our production costs, effective price management has helped increase trading margins, with an outstanding performance in our largest business area – insulation panels.”
The company said that almost all of its markets grew in both orders and shipments, and in its largest category, insulation panels, the backlog continued to grow at the halfway point, well above the same point in 2020.
The company said that while this was clearly a good sign for the rest of the year, it was expecting an interruption in its ability to supply due to some critical raw material restrictions.
It added that home improvement markets were generally buoyant and that the move towards more energy efficient construction in both new construction and renovations has been a driver of growth for Kingspan.
Increased exposure to high-growth markets such as online retail, data warehousing and electric vehicle production should also be key to the company’s continued growth, it said.