ROCKWOOL A/S Achieves Strong Sales and Earnings in H1 2024
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ROCKWOOL A/S Achieves Strong Sales and Earnings in H1 2024
ROCKWOOL A/S has reported impressive sales and earnings results for the first half of 2024, highlighting substantial growth primarily driven by volume increases and efficient operations. Overall, the financial performance of the company exhibited positive trends, reflecting both resilience and strategic operational management.
Sales Growth and Performance
In the first half of 2024, sales reached 1928 MEUR, representing an eight percent increase in both reported figures and local currencies compared to the previous year. The notable sales growth was predominantly attributed to flourishing markets in Central and Eastern Europe, alongside North America. Selling prices remained stable, contributing significantly to the volume growth experienced.
Quarterly Highlights
For the second quarter of 2024, sales amounted to 1010 MEUR, a robust ten percent rise in both local currencies and reported figures year-over-year. This quarterly performance underscores the company's capacity to continue expanding in key regions.
EBITDA and EBIT Performance
EBITDA for H1 2024 was reported at 469 MEUR, marking a 31 percent increase. The EBITDA margin for this period was a healthy 24.3 percent. Additionally, EBIT showed strong growth, climbing 44 percent to 341 MEUR, with an EBIT margin of 17.7 percent, up 4.4 percentage points from the prior year. For Q2 2024, EBITDA reached 253 MEUR, also a 31 percent increase, with an impressive EBITDA margin of 25.1 percent.
Operational Investments and Cash Flow
During the first half of 2024, ROCKWOOL A/S achieved investments totaling 180 MEUR, an increase related to the finalization of the electrical melter conversion in Flumroc and capacity expansion for Grodan. The company's cash flow from operations before financial items and tax amounted to 399 MEUR, exceeding the prior year by 109 MEUR, indicating strong operational efficiency.
Shareholder Engagement
From 22 August 2024 until 5 September 2024, shareholders had the opportunity to request conversions of A shares to B shares, reflecting the company's ongoing engagement with its shareholders. Furthermore, the company completed the purchase of 223,900 B shares valued at 71 MEUR under its share buy-back program, demonstrating a commitment to returning value to shareholders.
Future Outlook for 2024
Looking ahead, ROCKWOOL A/S anticipates sales growth of around mid-single-digit percentages in local currencies. The company projects an EBIT margin of approximately 17 percent and an investment level of around 375 MEUR, excluding acquisitions, indicating strategic planning for sustainable growth.
CEO Commentary on Performance
CEO Jens Birgersson expressed satisfaction with the second quarter's performance, emphasizing that the record-high earnings were primarily driven by volume growth across various regions coupled with stable prices and efficient operations. Strong results were noted particularly in Eastern Europe, North America, and South Asia. The renovation and industrial sectors in Western Europe performed better than new construction projects, which faced challenges.
Contact Information
For further insights and information, Rockwool's CFO, Kim Junge Andersen, can be reached at +45 46 56 03 00.
Frequently Asked Questions
What were ROCKWOOL A/S's sales figures for H1 2024?
ROCKWOOL A/S reported sales of 1928 MEUR in H1 2024, marking an eight percent increase compared to the previous year.
How did EBITDA compare between H1 and Q2 2024?
EBITDA for H1 2024 was 469 MEUR, while for Q2 alone, it reached 253 MEUR, reflecting consistent performance throughout the period.
What investments did ROCKWOOL A/S prioritize in H1 2024?
The company invested 180 MEUR in H1 2024, focusing primarily on the electrical melter conversion and capacity expansion projects.
How did the EBIT margin change in 2024?
ROCKWOOL A/S's EBIT margin improved to 17.7 percent in H1 2024, indicating a significant increase from prior levels.
What is the expected sales growth for ROCKWOOL A/S in 2024?
The company anticipates mid-single-digit percentage growth in sales in local currencies for the remainder of 2024.
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