Annual Report 2019

Resilient by nature

Annual Report 2019

Our company is financially strong and we continue to invest in even more advanced production facilities, new technologies, strategic partnerships, and better services to customers like our new business-to-business e-commerce platform.

Net sales increased by 2.2 percent in local currencies, while EBIT margin reached 13.5 percent, up 0.7 percentage points compared to 2018. Profit for the year grew eight percent, reaching a total of EUR 285 million. We remain net debt free with a net positive cash position of EUR 269 million.

In 2020, we forecast low single-digit sales growth in local currencies, with an EBIT margin of around 12 percent and investments excluding acquisitions of around EUR 400 million. We will adjust the company’s capital structure via a share buy-back programme, totalling up to EUR 80 million.

Earnings call on full-year results 2019

Thursday, February 6 at 11:00 AM CET

Presented by

Listen to earnings call

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ROCKWOOL-Chairman&CEO
“For the fifth year in a row, our customer satisfaction scores increased—for 2019, up 14 percent over the previous year”.

Henrik Brandt & Jens Birgersson

Sales
0

2.2% growth in local currencies

EBIT margin
0

up from 12.8% last year

ROIC
0

down from 22.8% last year

ROCKWOOL Group delivered positive sales development with growth of 2.2% (in local currencies) in a volatile market, achieving strong profitability with an EBIT margin of 13.5%.
“With an eye on the long-term, we invested in new and upgraded manufacturing facilities, including the Romania factory, which came online at the end of 2019. The expanded capacity in Poland will come online in early 2020, while the expansion in Germany is on track for start-up in Q2 2020”.

Henrik Brandt & Jens Birgersson

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Market review and outlook 2020

In 2019, we experienced mixed market conditions particularly in the insulation business. Key markets such as France, the United Kingdom, Russia and North America remained buoyant for ROCKWOOL, while Germany, eastern Europe and Asia slowed. Overall, global growth decelerated to the slowest pace since the Eurozone crisis with trade tensions and other geopolitical uncertainties negatively affecting the business climate for ROCKWOOL.

For 2020, we forecast low single-digit sales growth in local currencies, with growth opportunities for France, the United Kingdom and North America as well as Systems segment, though still with some uncertainties for markets in Germany, eastern Europe and Asia. The focus for our operational excellence programme will be on productivity. At the same time, we have several new manufacturing lines, which will improve productivity and optimise our logistics footprint.

Picture - © National Aquarium Denmark. Den Blå Planet / Blue Planet - Adam Mørk

National Aquarium Denmark. Den Blå Planet / Blue Planet For more information see: Permissions

Outlook 2020

Sales growth
0

in local currencies

EBIT margin
0

around

Investments
0

around, excl. acquisitions

Financial performance

In 2019, ROCKWOOL Group was faced with continued mixed market conditions across countries and businesses. Overall, positive market conditions were seen in the construction sector although global growth flattened.

Both the residential and non-residential segments in the construction market were affected, especially in the German and Eastern European markets. In contrast, infrastructure and renovation markets showed stronger growth supported by energy efficiency initiatives that increased demand for our non-combustible insulation products.

RockWorld imagery, The big picture, rock, water, sea
Sales
0

2.2% growth in local currencies

EBIT margin
0

up from 12.8% last year

ROIC
0

down from 22.8% last year

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For more information, contact Investor Relations

Kim Junge Andersen, Group Management, white backround

Kim Junge Andersen

Senior Vice President, Chief Financial Officer (CFO),
ROCKWOOL Group

+45 46 55 80 15

investor@rockwool.com

ROCKWOOL Group