Positive sales momentum and strong profitability in challenging markets
May 15 2024 - 5:21AM
Positive sales momentum and strong profitability in challenging
markets
Report on the first quarter of 2024for ROCKWOOL A/SRelease no.
23 – 2024to Nasdaq Copenhagen
15 May 2024
Positive sales momentum and strong profitability in
challenging markets Highlights
- Sales in Q1 2024 totalled 918 MEUR, an increase of six percent
in both local currencies and reported figures compared to a weak
quarter last year.
- EBITDA in Q1 2024 reached 216 MEUR, an increase of 32 percent
in reported figures compared to Q1 2023. The EBITDA margin was 23.5
percent, up 4.6 percentage points from last year. Higher volume,
stable overall pricing combined with productivity gains and cost
savings ensured a satisfactory earnings level.
- EBIT amounted to 152 MEUR in Q1 2024, an increase of 46
percent, with a 16.5 percent EBIT margin, up 4.5 percentage points
from Q1 2023. EBIT includes a 6 MEUR provision for donations to the
Foundation for Ukrainian Reconstruction compared to 13 MEUR in the
same period last year.
- Investments totalled 84 MEUR in Q1 2024, including the
finalisation of the electrification of the factory in Flumroc,
(Switzerland).
- Annualised return on invested capital reached 21 percent, up
from 16 percent in Q1 2023, primarily due to increased
earnings.
- Shareholders may from 15 May 2024 until 30 May 2024 request
conversion of A shares to B shares. For further information please
refer to
https://www.rockwool.com/group/about-us/investors/conversion-shares/.
- At the end of March 2024, the company had purchased 105 900 B
shares under the share buy-back programme for a total amount of 31
MEUR.
Outlook 2024
- Sales growth of around mid-single-digit percent in local
currencies.
- EBIT margin around 15 percent.
- Investment level around 375 MEUR excluding acquisitions.
CEO commentCommenting on the Group’s
performance, CEO Jens Birgersson says:
“First quarter sales rebounded satisfactorily, up six percent,
and earnings were strong, up 46 percent. Prices have remained
broadly stable during the quarter, with demand remaining solid in
North America and parts of Asia. The Insulation segment performed
well overall on sales and earnings, whereas performance was more
challenged in the Systems segment. I am pleased that we
successfully started up our new green energy technology in
Switzerland – the biggest stone wool electric melter in the world.
Looking ahead, we are carefully optimistic that we will see
improved conditions in the industrial construction sector. We are
encouraged by the EU’s adoption of the Energy Performance of
Buildings Directive, which over time will increase the rate of
building renovations and thus demand for insulation”.
Further information:Kim Junge Andersen, Chief
Financial OfficerROCKWOOL A/S+45 46 56 03 00
Earnings call:ROCKWOOL Group will host an
earnings call on 16 May 2024 at 11.00 CEST. The earnings call will
be transmitted live on www.rockwool.com.
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