Insulation and building materials manufacturer Kingspan has reported a record first quarter with group sales of €1.89 billion for the three months to the end of March up 47% on the same time last year.
In a trading update ahead of its AGM, Kingspan said that raw material inflation, which had eased considerably at the turn of the year, has returned sharply over the past six weeks.
The associated recovery effort is ongoing, it added.
Kingspan said its markets in Europe were strongly ahead overall, the Americas had a positive start to the year with a very encouraging pipeline in North America while it was also seeing robust order intake activity recently in Latin America.
Australasia, which was subdued for most of last year, is looking better as the year progresses, it added.
Looking ahead, Kingspan said its trading outlook for the second quarter is positive with a strong order backlog on hand and "decent" activity in most end markets.
But it cautioned that raw material inflation remains an issue to be firmly managed, coming on the back of a highly inflationary year in 2021.
"As previously highlighted, margins year on year are likely to see a lag associated with this. In addition to the €800m committed on acquisitions announced earlier in the year, the group's development agenda and pipeline are strong, although nothing can be certain on that front," it added.
In today's trading update, Co Cavan-based Kingspan said its Insulated Panels sales were up 44% with sales positive across most significant markets worldwide.
It noted that raw material inflation necessitated significant pricing activity, while order intake volumes overall were broadly flat compared to the first quarter of 2021 which itself was very buoyant.
Kingspan's Insulation sales increased by 72% in the first quarter on the back of the contribution of Logstor, which it bought in the middle of 2021 and which is trading very well with district heating solutions a particular highlight.
Volumes grew strongly in Australasia, which together with growth in Central and Eastern Europe, offset modest decreases elsewhere against a strong comparative, the company added.
Meanwhile, Light & Air sales were up 41% and Kingspan said the underlying sales performance was positive across all key markets with momentum in order intake and progress in margins.
Data & Flooring sales increased by 32% in the three month to the end of March, as data centre solutions continued to grow and offset the anticipated weakness in new office construction.
Kingspan said its Water & Energy division started the year well with sales 24% ahead in the first quarter, although margins have seen some pressure. Wastewater and rainwater solutions are an increasing area of opportunity, it added.
Shares in the company moved higher in Dublin trade today.
