(Alliance News) - Kingspan Group PLC on Thursday reported a dip in first quarter sales due to Covid-19 disruption from the middle of March.
The building materials company said that sales for the three-month period to the end of March were EUR1.03 billion, down 3% year-on-year or 7% down pre-acquisitions.
Kingspan said that sales in its insulated panels division were down 2% or down 8% pre-acquisitions. Sales activity in the UK was well behind a year before, while overall sales in mainland Europe were "solid". In the Americas, sales were encouraging, the company said, driven by a good performance in the US and Brazil.
Sales in Water & Energy were down by 8%. However, Data & Flooring sales shot up 17%, though just 2% pre-acquisitions, aided by strong data centre activity in Europe, North America and Asia. In the Light & Air Division, sales were up by 1%.
Kingspan said it expects its acquisition of Colt Group earlier in April to add annualised revenue of over EUR150 million.
Since the start of the second quarter in April, global sales have fallen by almost 35% year-on-year due to the full or partial closures of construction markets worldwide. While sales in the Americas, Germany and parts of central Europe have been "robust", France and Southern Europe have been weak. Activity in Ireland has plunged by more than 80%, and in the UK it has more than halved.
"We continue to focus on the aspects of our business that we can control and to ensure Kingspan is positioned to respond rapidly to activity swings in either direction. This challenge will inevitably pass and whilst its duration and medium-term impacts are unclear we are confident that the diversification of our end markets, the innovation of our high performance proposition, our balance sheet strength and the resolve of our people all position Kingspan well for the longer term," the Kingscourt, Ireland-based company said.
Kingspan said it currently has over EUR1 billion in cash and committed, undrawn facilities. Bank debt as at Monday was EUR551 million, with the amount expected to be at around EUR580 million at the end of June.
Shares in Kingspan were trading 3.1% lower at 46.72 pence each on Thursday afternoon in London.
It holds its annual general meeting on Friday.
By Ife Taiwo; ifetaiwo@alliancenews.com
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