Kingspan Shares Jump After Insulation Maker Posts H1 Profit Rise

By Scott Kanowsky 

Investing.com -- London-listed shares in Kingspan Group (LON:KSP) rose on Friday after the building insulation maker said it had been able to navigate “large” increases in input costs with only a little impact on its margins.

Trading income at the Ireland-based group jumped by 32% compared to the same six-month period last year, hitting a record €434.2M, thanks in part to higher sales prices that helped offset a decline in order intake volumes in May and June.

The firm also reported a 42% rise in half-year revenue to €4.15B.

However, the company's trading margin - a key measure of operating profit - slumped by 80 basis points to 10.5%, as it faced "challenging" conditions from spikes in raw material costs.

Kingspan - which operates 198 sites in more than 70 countries - said it has seen these inflationary pressures ease in recent months, although it "remains to be seen" how this trend will be impacted by likely energy supply constraints in Europe this winter.

Chief executive officer Gene Murtagh told analysts that the costs for steel and chemicals have fallen especially, but added that it was too soon to pass on these lower prices to customers due to heightened uncertainty around the inflation outlook.