Profits at Kingspan rose last year as the insulation giant reported a “record performance against a challenging backdrop.”

The Cavan-headquartered company saw trading profit rise 5pc year-on-year to €877m in 2023, according to annual results from the group published today.

Earnings before interest, taxes, depreciation, and amortisation rose to €1bn, up 7pc from 2022 levels.

Revenues were down 3pc to €8.1bn across the year.

The group said that acquisitions contributed 5pc to sales growth in 2023, as well as 4pc to trading profit.

Insulated panels sales dropped 9pc, with strong demand in France, the US and Latin America offset by a slowdown in volumes in central and Eastern Europe, as well as a lower pricing following input deflation.

Insulation sales fell by 8pc as a result of weak residential markets and price deflation.

However, Kingspan noted an improvement in order intake throughout the year.

“Despite markets and geographies moving at different speeds, Kingspan was pleased to deliver another year of record profits and record cash generation whilst continuing to innovate and diversify our revenue base,” chief executive officer Gene Murtagh said.

The company also invested a total of €482m in acquisitions and net capital expenditure during the year.

“Last month we completed our acquisition of 51pc of Steico, the world-leader in wood wool insulation and this morning we are pleased to announce our decision to ring-fence €750m of growth capital for our Roofing +Waterproofing business in the US over the next five years,” Mr Murtagh added.

This morning, the group announced that it has signed a series of agreements to acquire the stonewool insulation business and assets of German firm Karl Bachl Kunststoffverarbeitung GmbH & Co. KG for an undisclosed sum.

This transaction is expected to be completed by March 31 and is being funded from existing cash reserves.

Kingspan will pay a final dividend per share of 26.6 cents for 2023, with the total dividend for last year up to 52.9 cents from 49.4 cents in 2022.

Mr Murtagh said that it was too early to provide any guidance on 2024 performance but noted that “seasonal factors have hampered early progress in some markets.”

Reporting On:independent.ie