Annual report 2017 announced

08 February 2018

Strong sales development with solid profitability driven by productivity and pricing improvements

RockWorld imagery, The Big Picture, people, train, station

ROCKWOOL Group CEO Jens Birgersson comments on the full year results announced today:

With sales up in all major markets and solid profitability, 2017 has been another strong year for our business. We delivered a very solid Q4 result with the bottom line up 25% on a top-line increase of 10%. I am very pleased with our organisation’s ability to execute and deliver on our strategy. We see continued good market demand for our non-combustible stone wool products and step into 2018 with a high capacity utilisation.

Jens Birgersson

ROCKWOOL Group CEO

Highlights 2017

  • Sales in 2017 reached EUR 2,374 million, a growth of 7.1% in local currencies excluding acquisitions. Total net sales grew 7.8% including currency impact and acquisitions.
  • Full-year EBIT increased by 12% to EUR 258 million, with a 10.8% EBIT margin, up 0.4 %-points from last year.
  • In Q4, in local currencies and excluding acquisitions, net sales increased 10.3%; EBIT increased 25.0%; and EBIT margin reached 11.4%, up 1.5%-points from Q4 last year.
  • Net profit for the year reached EUR 214 million, an improvement of EUR 47 million compared to last year including EUR 25 million for revaluation of shares in Flumroc.
  • Net cash position ended the year at EUR 241 million, an improvement of EUR 125 million over last year.
  • Investments totalled EUR 130 million, with the main investment being the new Rockfon factory in the United States.
  • Annualised return on invested capital reached 17.9% compared to 15.8% last year, driven by higher operational earnings.
  • The acquisition of the majority shareholding in Flumroc on 17 November 2017 did not have a significant impact on the 2017 operational results. 
  • The proposed dividend per share is DKK 24.10, up from DKK 18.80 last year.

Full year Outlook 2018

  • Growth in net sales is expected to reach 7-10% in local currencies, including around 2% from the acquisition of Flumroc. With lower comparables, we expect higher growth rates in the first half of the year.
  • EBIT margin to reach at least 11%.
  • Investment level excluding acquisitions around EUR 230 million.