Kingspan 2020 Full Year Results

19 February 2021 Kingspan Group
Kingspan, the global leader in high-performance insulation and building envelope solutions, reports its preliminary results for the year ended 31 December 2020.
 
Financial Highlights:
  • Revenue down 2% to €4.6bn, (pre-currency, in line with prior year).
  • Trading profit up 2% to €508.2m, (pre-currency, up 5%).
  • Free cashflow up 42% to €479.7m.
  • Group trading margin of 11.1%, an increase of 40bps.
  • Basic EPS up 1% to 206.2 cent.
  • Final dividend per share of 20.6 cent. Total dividend for the year up 58%, compared to 13.0 cent for 2019 (as adjusted for the calculation).
  • Year-end net debt1 of €236.2m (2019: €633.2m). Net debt1 to EBITDA1 of 0.4x (2019: 1.1x).
  • ROCE of 18.4% (2019: 17.3%).

1 Net Debt and EBITDA both pre-IFRS 16


Operational Summary:
  • Insulated Panels sales decrease of 4% mainly due to second quarter lows. Solid performance with most end markets experiencing recovery in  the second half. Europe positive, particularly Germany and France. Strong finish to the year in the UK. Strong order intake in the Americas in the fourth quarter. 33% growth in QuadcoreTM sales globally in 2020.  
  • Insulation Boards sales decrease of 10% albeit much improved in H2, down 2%. Strong performance in Western Europe, good second half recovery in Ireland and UK, Americas and Australia ahead of prior year. Softer in the Middle East and Southern Europe. 
  • Another year of progress in Light + Air with sales up 36% in the year, acquisition of Colt a key driver. Europe positive overall although softer in North America. Further bolt on acquisition in Europe, Skydome, agreed after year end. 
  • Water & Energy sales down 3% with a resilient performance overall and year on year margin improvement. Water applications particularly positive. 
  • Data & Flooring sales increase by 4%. Strong performance across data centre applications offsetting softer office activity.
  • Steep raw material inflation a key theme as we enter 2021 with a challenging recovery effort underway. 
Summary Financials:
  FY’20 FY’19 change
Revenue €m 4,576.0 4,659.1 -2%
Trading Profit2 €m 508.2 497.1 + 2%
Trading Margin3 11.1% 10.7% + 40bps
Profit after tax €m 384.8 377.8 + 2 %
EPS (cent) 206.2 204.6 + 1 %
1 Net Debt and EBITDA both pre-IFRS 16
2 Operating profit before amortisation of intangibles
3 Trading profit divided by total revenue
 


Gene M. Murtagh, Chief Executive Officer of Kingspan commented:
 
“The company’s financial performance in 2020 was robust, with the deep reduction in activity in April and May partly offset by a strong recovery towards the end of the year. Continued cost discipline helped us to deliver a small increase in trading profit despite the decline in revenue, and our organic and acquisition-led expansion of the business remains an ongoing focus.
 
The role our products can play in helping customers to reduce carbon emissions over the lifetime of a building is growing in importance. We also completed the first year of our ambitious Planet Passionate programme which is tracking 12 targets we have set the business to reduce its own environmental footprint.
 
2021 has started well, with performance helped by the strong backlog of activity from last year. Raw material price inflation is a significant ongoing issue to manage, but sentiment across our end markets is positive.”

 


For further information contact:

Murray Consultants
Douglas Keatinge                               Tel: +353 (0) 1 4980 300 

For more information, click here.

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