Materials giant boosted by strong demand and acquisitions
Kingspan Group has reported a 50% increase in its pre-tax profit boosted by 鈥榮trong鈥� sales of its insulation products as it successfully passed rising raw materials costs on to customers.
The Irish materials giant this morning reported a pre-tax profit of 鈧�689m for the year to 31 December, up from 鈧�459m the previous year. Its preliminary results also showed a 42% increase in revenue to 鈧�6.5bn.
It said: 鈥�2021 was a year marked by extraordinary volatility in supply chains and wider society. While this dynamic created significant challenges to our business, and indeed our industry, underlying demand remained strong through the year, albeit somewhat weaker in quarter four.
鈥淥ur key raw materials also saw dramatic price inflation, and in all, in the region of 鈧�700m of cost increases were required to be passed through to market. The result of all of this was a record performance by the group.鈥�
Kingspan said its turnover was boosted by a 45% increase in sales of its insulated panel products which were 鈥渄riven by strong momentum in construction generally鈥�.
It said: 鈥淩aw material-led price growth [was] further enhanced by strong demand in high growth sectors鈥�.
Sales of insulation increased 50% year-on-year and were 11% ahead of expectations, which Kingspan said reflected strong demand in key markets and inflation recovery on pricing.