Annual Report for 2019 for ROCKWOOL International A/S

Annual Report for 2019

for ROCKWOOL International A/S

Release no. 1 – 2020

to Nasdaq Copenhagen

5 February 2020

Sales growth of 2.2 percent in a volatile market, achieving strong profitability with an EBIT margin of 13.5 percent

 

Highlights

• Sales in 2019 reached EUR 2,757 million, a growth of 2.2 percent in local currencies. The positive currency impact was one percentage point.
  
   
• In Q4 2019, sales decreased 0.6 percent in local currencies, reaching EUR 715 million.
  
   
• EBIT in 2019 ended at EUR 372 million, an increase of nine percent, with a 13.5 percent EBIT margin, up 0.7 percentage points from 2018.
  
   
• EBIT in Q4 2019 reached EUR 94 million, an increase of 13 percent, with an EBIT margin of 13.2 percent, up 1.5 percentage points from Q4 2018.
  
  
  
  
• Net profit for the year reached EUR 285 million, an improvement of EUR 20 million compared to last year.
  
  
  
  
• Investments for the year totalled EUR 400 million, primarily from capacity expansions.
  
  
  
  
• Free cash flow ended the year at EUR 2 million against EUR 196 million for 2018.
  
  
  
  
• Annualised return on invested capital reached 21.7 percent compared to 22.8 percent in 2018, due to higher investments.
  
  
  
  
• The proposed dividend per share is DKK 32.00, up from DKK 29.90 last year.
  
  
  
  
• A share buy-back programme up to an amount of EUR 80 million, commencing on 6 February 2020.

Outlook 2020

• Low single-digit sales growth in local currencies.
  
   
• EBIT margin around 12 percent, comparable to 2019 when adjusting for the additional depreciation and the start-up costs in Norway and Germany.
  
   
• Investment level around EUR 400 million excluding acquisitions.
  
  
  
  

For further details please refer to the Annual Report 2019.

CEO comment

Commenting on the Group’s performance, CEO Jens Birgersson says:

“We navigated last year’s mixed market conditions well, achieving strong profitability and good sales growth, with the Systems segment performing especially well. We also invested in new and upgraded manufacturing and research facilities. Looking ahead, we anticipate continued market volatility, with low-single digit sales growth and solid profitability. The growing demand for naturally fire-resistant, recyclable stone wool products should help smooth out overall volatility”.

Further information:

Kim Junge Andersen, Chief Financial Officer

ROCKWOOL International A/S

Conference call:

ROCKWOOL Group will host an earnings call on 6 February 2020 at 11.00 CET. To attend the conference call dial , or . Passcode 43564907#. The conference call will be transmitted live on  

Attachment