ROCKWOOL upgrades expected sales growth and earnings margin for full-year 2024
Company announcement
for ROCKWOOL A/S
Release no. 21 – 2024
to Nasdaq Copenhagen
3 May 2024
ROCKWOOL upgrades expected sales growth and earnings margin for full-year 2024
Based on preliminary reporting, ROCKWOOL increases the expected growth in sales and EBIT margin for 2024 as follows:
- Net sales is increased to a growth of around mid-single-digit percent in local currencies from our previous guidance of sales at roughly the same level as in 2023.
- EBIT margin is increased to around 15 percent from the previously forecasted outlook of around 13 percent.
Main preliminary highlights for Q1 2024:
- Net sales for Q1 2024 reached 918 MEUR, an increase of six percent in local currencies driven by higher than expected sales in the non-residential segment.
- EBIT in Q1 2024 increased 46 percent to 152 MEUR, with a 16.5 percent EBIT margin, up 4.5 percentage points from Q1 2023.
Outlook 2024:
ROCKWOOL Group had a good Q1 2024 with solid growth and good earnings. The positive development was driven by improved volumes, stable sales prices combined with productivity gains and cost savings.
The North American market is growing well, and our factories there are now running at high capacity, reflecting the strong demand and our efforts to reduce lead times. Many European markets remained at a low activity level due to a subdued residential construction industry and high building costs driven by high interest rates and inflation. During the quarter, we saw a notable uptake in sales within the industrial segment in Central and Eastern Europe. Volume increased solidly in South Asia, driven by strong demand.
Despite good earnings in Q1 2024, we see inflation remaining persistent. Some input costs have started to rise, which is expected to increase our production costs in the coming quarters. Therefore, profitability is more challenged in the remainder of 2024. To account for this, market specific price actions will be taken to match the expected inflation.
Based on these factors, we upgrade our full-year 2024 outlook for net sales to a growth of around mid-single-digit percent in local currencies from our previous guidance of sales at roughly at the same level as in 2023. And we expect the EBIT margin to improve to around 15 percent from the previously forecasted outlook of around 13 percent. The expected investment level excluding acquisitions is maintained at around 375 MEUR.
ROCKWOOL Group will publish its full Q1 2024 results on 15 May 2024.
Further information:
Kim Junge Andersen
Chief Financial Officer
ROCKWOOL A/S
+45 46 56 03 00
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