Insulation and builders materials group Kingspan has reported trading profit of €435.5m for the first half of its financial year, a modest increase on the record profit during the same time last year.
That result came on the back of revenue of €4.1 billion, which was down 2% on the first half of 2022.
Profit after tax of €324m was up marginally in what the company called a "somewhat challenging" trading environment.
The Co-Cavan based group said trading conditions varied considerably by market, with the Americas - and the US in particular - performing exceptionally well.
The performance in Europe was described as "mixed" with weaker new-build activity and interest rates starting to impact the refurbishment market.
Overall insulation sales were down 5%, driven by weak residential markets, with sales of insulated panels down 10% driven in particular by "sluggish" volumes in Central and Eastern Europe.
"We are pleased with a strong first half performance in a testing environment," Gene Murtagh, the chief executive of Kingspan said.
"Performance outcomes varied by product and by market, against a backdrop of higher interest rates and a degree of price deflation," he explained.
Acquisitions contributed 7% to the company's sales growth in the half year and 4% to trading profit growth in the six month period.
Since the half year period ended, Kingspan agreed a deal to buy 51% of Steico, the world leader in wood-based insulation, which will add to its growing bio-based portfolio including hemp and wood-wool acoustic insulation.
"Along with our portfolio of LEC (lower embodied carbon) products, the first of which launched this year, we are now firmly established as a leader in the growing market for lower embodied carbon construction products," Mr Murtagh said.
Gene Murtagh also said that the harsh reality of climate change has become an everyday reality for many this year, intensifying the urgency to deliver meaningful and increasingly smart decarbonisation solutions.
"Kingspan's Innovation and Planet Passionate strategies have the firm aim of addressing this challenge through driving progressively sustainable building envelope solutions. These strategies are deeply embedded across Kingspan, delivering a reduction of direct GHG emissions by over 50% in the first half and reinforcing a common goal for our people globally," he said.
"As we look to the remainder of the year, we expect continuing strategic momentum supported by a strong development pipeline, an increasingly stable supply chain and pricing environment, and a global decarbonisation drive," he added.
The last day of trade for Kingspan shares in London was yesterday after the company's shareholders last month approved a move to cancel the company's listing on the London Stock Exchange.
The company said it remain committed to its primary listing on the main market of Euronext Dublin, where the majority of its share trading takes place.
Breaking down its divisions today, Kingspan said that revenues in its Insulated Panels division for the six month period fell by 10% to €2.386 billion, while trading profits eased by 3% to €291.2m.
It said the drops were due to weaker volumes in some markets and a degree of price deflation, especially in Continental Europe.
Revenue at Kingspan's Insulation division decreased by 5% to €798.8m while trading profits were down 14% to €75.8m.
The company noted that demand in Western Europe has been notably weak, while raw material costs have reduced with a consequential pricing impact in many markets.
Kingspan said that revenues at its Light, Air +Water division dipped 1% to €470.6m while trading profits jumped by 21% to €30m.
The company noted that France, Benelux and Germany performed well in the first half of they ear, while its North American performance was in line with last year and the Middle East was "somewhat weaker".
Meanwhile, revenues at its new Roofing + Waterproofing platform came in at €238.6m and trading profits amounted to €10.7m.
And revenues at its Data + Flooring division rose by 10% to €189.2m while trading profits were up 28% to €27.8m.
Shares in the company were lower in Dublin trade today.
