Kingscourt, Ireland — Rigid insulation foam company Kingspan saw record sales in 2016 on low cost raw materials, but prices are on the rise in 2017 and must be passed on, the firm warned in its 2016 financial report.
Revenue of EUR 3.1 bn in 2016 was up 12% on 2015 and trading profits were up 33% at EUR 341 m, the company announced today, confirming a prediction the firm made in November 2016. The group trading margin of 11% in the year was up 1.8% on 2015, the company said.
2016 reflected favourable input prices at "untypically low levels. That tide is turned and it is our intention to pass through the significant industry inflation experienced in recent months. We expect to see further increases in our cost base as you move through the first half of 2017," the company warned
Turning to performance in 2016 the company said this was strong in the UK, and clear recovery was "evident in much of Western Europe with the US more subdued in the second half."
European sales are strong in the Netherlands and France, and were flat in Germany, the company said adding that insulated panels sales in the UK had had "a strong year".
Total capital investment in 2016 was EUR 364 m, of which EUR 113 m was capex. Acquisitions cost EUR 250 m in 2016, the company revealed.
Gene Murtagh, chief executive said "2016 was another record year for Kingspan. We are developing a truly global business, well placed to capitalise on transition towards a lower energy future. We are encouraged about the outlook for the first half of 2017 the current order book is ahead of the same point last year."