Positive H1 performance amidst market volatility

23 August 2019

Strong half-year results despite some segments, regions slowing down

Case Study, Duo Residences

"We delivered a strong first half and a good quarter, in which we nonetheless saw some segments and regions slowing down and continued volatility in the market. We initiated capacity reductions in the affected areas. Both the Insulation and Systems segments grew, and we are particularly pleased with the growth across the entire Systems portfolio. Overall, pricing improved, however with strong price pressure in certain markets."

-CEO Jens Birgersson

Highlights

  • H1 2019 sales reached EUR 1,336 million, a growth of 4.4 percent in local currencies.
  • In Q2 2019, sales increased 3.3 percent in local currencies and reached EUR 695 million. Q2 was a short quarter with fewer working days, affecting growth by around 1.5 percentage points.
  • EBIT in H1 2019 ended at EUR 178 million, an increase of 11 percent, with a 13.4 percent EBIT margin, up 0.7 percentage points from H1 last year.
  • EBIT in Q2 2019 reached EUR 102 million, an increase of 12 percent and an EBIT margin of 14.7 percent, up 1.1 percentage points from Q2 last year. 
  • Investments in the first half of 2019 reached EUR 172 million, up EUR 101 million compared to last year. The increase is primarily due to ongoing capacity expansions in Germany, Romania and the United States.
  • Annualised return on invested capital reached 21.6 percent compared to 20.6 percent last year, driven by higher operational earnings.
  • On 10 September 2019, ROCKWOOL Group will introduce quarterly meetings dedicated to Environmental, Social and Governance (ESG) investors. Consistent with our Group purpose to enrich modern living, we are committed to delivering excellent long-term investment performance alongside environmental stewardship, ensuring that our business decisions have a positive impact on the lives of many, beyond financial performance.

 

Outlook 2019

 

  • Due to the continued volatile market environment, the outlook for net sales growth has been revised; we now expect a full-year net sales growth of 2-5 percent in local currencies from the previous 4-8 percent.
  • EBIT margin at around the same level as last year (12.8 percent), including the one-off positive EBIT impact from the Rockfon North America legal case settlement.
  • Investment level is expected around EUR 390 million from previous EUR 330 million.
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