Kingspan Sales Rise in Q3 Despite 'Sluggish' Volumes
By Scott Kanowsky
Investing.com -- Irish building materials company Kingspan Group (IR:KSP) reported rising sales in the third quarter despite an inflation-linked slowdown in volumes.
Revenue during the three months to September 30 grew by 17%, with the figure over the nine-month period growing by 33% to €6.25 billion.
The Dublin-based company said sales of its key insulation panels increased by 7% during the period, buoyed by trading holding up "reasonably well" in America, Germany, and the United Kingdom.
However, it still described quarterly sales as "sluggish," with order placement for the panels flagging in the middle of the year due to buyer concerns that the firm would pass on elevated raw material prices. In August, Kingspan flagged that it would retain higher sales prices, even if it hit volumes.
It added that inventories were also at higher-than-normal levels, which has led to a short-term impact on margins.
Looking ahead, Kingspan warned that there is a lack of visibility on its outlook beyond the next "short period" of months.
"Sentiment is cautious for the most part although not uniformly so. The sharp increases we have seen in raw material prices over the last eighteen months appear to have peaked, at least for now," Kingspan said.
London-listed shares in the group were slightly higher in mid-morning trading on Monday.
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