Kingscourt, Ireland – Insulation manufacturer Kingspan’s 2015 revenues were EUR2.77bn ($3bn), 47% higher on 2014, according to its end of year financial results.
The company’s trading profit rose by 72% to EUR256m and EBITDA (earnings before interest, tax, depreciation and amortisation) EUR316m compared to EUR189m in 2014 – a rise of 67%.
The firm invested EUR570m in acquisitions during the year, a factor which “contributed significantly to the outturn [by] adding 35%, (EUR654m) to group revenue,” the report said.
“Strong organic growth was achieved in our major businesses in the UK, North America, Turkey and the Middle East, more than offsetting the more challenging experience we had in some European markets and in Australasia.”
The firm’s UK insulation business “made strong gains during 2015, particularly in the first half.” The Netherlands, the insulation division's largest single market in Western Europe, saw “notable growth” in 2015, bucking the challenging trends of the preceding three years or so, although Belgium and France were weaker, mainly in the second half, and can be expected to remain challenging for the foreseeable future. Germany was “somewhat slow”.
Kingspan’s Joris Ide acquisition “significantly enhanced [its] market presence” and provides a manufacturing platform for supplying markets in Western Europe, South East Europe and Russia.
The firm also entered the Nordics market with the acquisition of SPU Oy in Finland.
Its Vicwest acquisition greatly increased its presence across North America, with the territory now representing 20% of total group revenue, the report said. Its facility in Winchester, Virginia, is operating at full capacity with “significant expansion” due for completion within a year.
Australia presented “a challenging year for the business,” particularly in the earlier part of the year however, momentum picked up considerably towards year-end.
Kingspan’s Kooltherm brand grew significantly in 2015 compared to 2014, a factor that Kingspan said is “key in the run up to its greenfield facility in Melbourne coming on-stream in early 2017.”
The company intends to supply New Zealand, Indonesia and all other South East Asian markets from the facility.
XE Currency conversion: 22 February, 2015