ROCKWOOL upgrades expected earnings margin for full-year 2024
July 18 2024 - 8:50AM
UK Regulatory
ROCKWOOL upgrades expected earnings margin for full-year 2024
Company announcement
for ROCKWOOL A/S
Release no. 40 – 2024
to Nasdaq Copenhagen
18 July 2024
ROCKWOOL upgrades expected earnings margin for full-year
2024
Based on preliminary reporting, ROCKWOOL increases the expected
EBIT margin for 2024 as follows:
- EBIT margin is increased to around 17
percent from the previously forecasted outlook of around 15
percent.
Main preliminary highlights for Q2 and H1
2024:
- Net sales for Q2 2024 reached 1010 MEUR, an increase of ten
percent in local currencies with a particular strong demand in
North America, Eastern Europe and a positive development in Central
Europe.
- Net sales for H1 2024 reached 1928 MEUR, an increase of eight
percent in local currencies.
- EBIT in Q2 2024 increased 42 percent to 189 MEUR, with a 18.7
percent EBIT margin, up 4.2 percentage points from Q2 2023.
- EBIT in H1 2024 increased 44 percent to 341 MEUR, with a 17.7
percent EBIT margin, up 4.4 percentage points from H1 2023.
Outlook 2024:
ROCKWOOL Group had a good Q2 2024 with solid growth. The sales
increase was driven by volume growth while sales prices overall
remained stable while trended slightly downwards in some markets to
preserve market share. Earnings levels continued at the sound level
experienced in Q1, as input costs remained lower than expected
mainly because of stable energy prices.
The North American market continues to grow well, and our
factories there are now running near full capacity, reflecting the
strong demand and our ongoing efforts to catch up on deliveries and
reduce lead times. Also, the regions Central and Eastern Europe
including Russia continued the sales growth within the renovation
and industrial business. Volume increased solidly in South Asia,
driven by strong demand.
Despite good earnings in H1 2024, we still see the risk of a
negative impact from sales prices during the second half of the
year to preserve market share. In addition, inflation for some
input costs remains persistent and we expect a continued negative
product mix to impact margins.
Based on these factors, we expect the full year EBIT margin at
around 17 percent, up from the previously outlook of around 15
percent. The outlook for sales remains unchanged with an expected
growth of around mid-single-digit percent in local currencies. The
investment level excluding acquisitions is maintained at around 375
MEUR.
ROCKWOOL Group will publish its full Q2 and H1 2024 results on
22 August 2024.
Further
information:
Kim Junge Andersen
Chief Financial Officer
ROCKWOOL A/S
+45 46 56 03 00
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