Kingspan Group has increased its shareholder dividend by 120% on the back of growth in net profit to €570m in 2021 from €385m in 2020.
The final dividend of 26.0c (2020: 20.6 cent) follows the interim dividend 19.9c (2020: nil). The total dividend for 2021 is 45.9c compared to 20.6c for 2020. Through last year, the company also repurchased shares to the value of €47m.
The manufacturer of high-performance insulation and building envelope solutions enjoyed annual revenue growth of 42% in 2021 to €6.5bn.
Trading profit advanced 49% to €755m, with acquisitions contributing 12% to sales growth and 11% to trading profit growth in the year.
In preliminary results for 2021, Kingspan stated that the group trading margin of 11.6% was a 50 basis points increase on the prior year.
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Earnings per share came in at 303c, up 48% year-on-year. The share price has drifted back from €105 at the start of the year to the €92 level currently, leaving the historic p/e rating on x30.
The company disclosed that it invested €714m in acquisitions, capex and financial investments during 2021, and that since period end c.€800m has been committed on three transactions, subject to regulatory approvals.
CEO Gene M. Murtagh commented: “The business delivered an exceptional performance last year, with our growing sales to customers in the technology, online distribution, and automotive sectors instrumental in the results. Whilst dramatic input price inflation was a major feature, our cost recovery efforts helped ensure continued margin improvement.
“We continue to drive expansion through acquisition, with over half a billion euro invested in buying new businesses during the year. This was complemented by our organic growth activity as we opened five new manufacturing facilities or production lines this year, and plan for a further 25 over the next four years.”
Murtagh added that the group has made “good progress” on its ‘Planet Passionate’ targets, citing a reduction in Scope 1 and 2 GHG emissions for the second year of the programme, with a 4.3% reduction achieved in 2021.
“We will also implement a €70 per tonne internal carbon charge from 2023 to accelerate the pace of decarbonisation across our global business,” Murtagh added.
“Despite a slower fourth quarter, with a large order backlog we are cautiously optimistic about the outlook for this year, whilst mindful of the high bar in comparison with last year’s performance.
“High energy costs and supply threats around the world are a catalyst for a focus on conservation measures, which is likely to accelerate the demand for lower energy solutions which we believe will be supportive of demand for our products.”
Kingspan Group ended 2021 with total liabilities of €3.4bn, up from €3bn the year before. Year-end net worth was €3bn, including €2bn of goodwill and intangibles.
Net cashflow from operating activities declined sharply to €330m from €640m in 2020, and balance sheet cash reduced from €1,330m to €640m. Year-end net debt was €756m.
