Kingspan Group PLC on Friday predicted brighter fortunes for the rest of 2024 after challenging markets restricted progress in the first half.

In the six months to June 30, the Kingscourt, Ireland-based building materials supplier said pretax profit fell 4.1% to €376.5 million from €392.8 million a year prior.

Trading profit fell 3.1% to €421.8 million from €435.5 million. Basic earnings per share fell 5.3% to 165.9 euro cents from 175.2 cents.

The drop in profit came despite a 2.2% rise in revenue to €4.17 billion, a record high, up from €4.08 billion.

Acquisitions contributed 7% to the sales growth and 6% to trading profit growth in the period, Kingspan said.

But trading margin was squeezed, dropping 60 basis points to 10.1% year-on-year.

Kingspan said the results reflected a ‘resilient performance overall in tough end markets’.

In the early months sales volumes were sluggish, however this picked up as the months progressed, the firm remarked.

Encouragingly, order intake in its largest business segment, Insulated Panels, was well ahead compared to the first half of 2023. This should support better trading in the second half, Kingspan said.

In the first half, Insulated Panels sales fell 3.8% to €2.30 billion from €2.39 billion a year before. Positive volumes overall were offset by lower pricing.

Insulation sales rose 16% to €927.2 million from €798.8 million. Data & Flooring sales increased 19% to €226.0 million from €189.2 million.

Roofing & Waterproofing sales grew 7.8% to €257.1 million from €238.6 million but Light, Air & Water sales slipped 3.0% to €456.6 million from €470.6 million.

By geography, the Americas performed well, but Europe was mixed, with France and Belgium delivering solid activity but markets relatively weaker in Germany, the Nordics and the UK.

The half-year dividend was unchanged at 26.3 euro cents.

Chief Executive Gene Murtagh said: ‘Kingspan was pleased to deliver a resilient first half performance, with revenues reaching an all-time high despite some tough end markets. A sluggish but improving start to the year has given way to strong order intake at mid-year and we expect full year growth to be more heavily weighted to [the second half].’

Murtagh said Kingspan expects to deliver a better performance in the second half with trading profit growth anticipated for the full year.

In 2023, Kingspan reported trading profit of €877 million.

Shares were 0.6% higher at €81.20 in Frankfurt on Friday morning.

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