The global firm issued its Trading Update today, 03 May, ahead of its Annual General Meeting.
Group sales of €1.06bn for the three-month period to 31 March were 18% ahead of the previous year (+17% pre-currency, +6% pre-currency and acquisitions). Underlying sales growth reflected strong volumes across key markets partially offset by the deflationary effect of lower raw material prices.
By market during the first quarter, UK sales activity was positive although order intake in Insulated Panels was relatively subdued. Mainland Europe has traded solidly across the region. In the Americas, the US performed well, Canada recorded solid growth and Latin America performed strongly. Activity in Australasia has been lower than in recent years and in the Middle East activity was quite mixed and similar to much of last year. Ireland has had a strong start to the year.
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Insulated Panels sales were up 22% (+21% pre-currency, +7% pre-currency and acquisitions), with Insulation Boards sales and Light & Air sales up 12% and 13% respectively.
Bank debt at 31 March was broadly in line with the position at last year end. In addition, the Group adopted a new accounting standard, IFRS 16, with effect from 1 January 2019 which increases reported debt by approximately €140m as a consequence of capitalising leasing obligations. Group EBITDA increases by approximately €28m annually as a consequence of the same accounting standard with an immaterial impact on profit after tax.
The company anticipates reasonably positive momentum through the second quarter.
Kingspan will issue its half-year financial report for the period ended 30 June 2019 on Friday 23 August.
