Kingspan has reported a 32% rise in its trading profits in the first half of the year, following a surge in its revenues.

The building and materials group had a trading profit of €434.2m in the first six months of the year, up €105.3m on the same period of 2021.

That is ahead of the forecast the company made in June.

It came as revenues at the company hit €4.15 billion in the period - an increase of 42% year-on-year.

The improved performance came despite an 80 basis point fall in Kingspan's group trading profit in the first half of the year, as it fell to 10.5%.

However the company said acquisitions contributed 12% to its sales growth and 13% to its higher profits.

"Despite a challenging trading environment Kingspan delivered record half year results, with revenues over €4bn for the first time," said Kingspan CEO Gene Murtagh in a statement. "We have been able to navigate large input cost increases with only modest margin impact.

"We invested €522m in new businesses and cap-ex in the period, including significant progress executing on our strategy of developing a new business division focused on roofing and waterproofing solutions."

Mr Murtagh also cited their plan to build 25 new production lines in the next five years, including a €200m facility in Ukraine.

He said the company was maintaining its outlook for the full year and was confident of demand for its energy efficient products.

However he said there continued to be challenges that could impact the business in the short-term.

"Whilst inflationary pressures have eased in recent months, the context of energy supply constraints over the winter months in Europe will be something we will be closely monitoring," he said.

In a research note, Davy described the results as "outstanding".

"An unscheduled trading update in June indicated that Kingspan would deliver an outstanding first-half result and this has duly materialised," said industrials analyst, Flor O'Donoghue. "Kingspan has also maintained the outlook given in June, which we view as relatively encouraging.

"We see scope to nudge our full year trading profit forecast up towards €850m (from €841m) and are unlikely to make any material change to our 2023 estimates.

"The half was also characterised by further significant investment, which underlines our longer-term confidence that Kingspan remains superbly positioned to deliver real growth through the cycle."

Shares in Kingspan were almost 8% higher by mid-afternoon in Dublin trade.