Annual report 2017 announced

8 February 2018

Strong sales development with solid profitability driven by productivity and pricing improvements

ROCKWOOL Group CEO Jens Birgersson comments on the full year results announced today:

With sales up in all major markets and solid profitability, 2017 has been another strong year for our business. We delivered a very solid Q4 result with the bottom line up 25% on a top-line increase of 10%. I am very pleased with our organisation’s ability to execute and deliver on our strategy. We see continued good market demand for our non-combustible stone wool products and step into 2018 with a high capacity utilisation.

Jens Birgersson

ROCKWOOL Group CEO

Highlights 2017

  • Sales in 2017 reached EUR 2,374 million, a growth of 7.1% in local currencies excluding acquisitions. Total net sales grew 7.8% including currency impact and acquisitions.
  • Full-year EBIT increased by 12% to EUR 258 million, with a 10.8% EBIT margin, up 0.4 %-points from last year.
  • In Q4, in local currencies and excluding acquisitions, net sales increased 10.3%; EBIT increased 25.0%; and EBIT margin reached 11.4%, up 1.5%-points from Q4 last year.
  • Net profit for the year reached EUR 214 million, an improvement of EUR 47 million compared to last year including EUR 25 million for revaluation of shares in Flumroc.
  • Net cash position ended the year at EUR 241 million, an improvement of EUR 125 million over last year.
  • Investments totalled EUR 130 million, with the main investment being the new Rockfon factory in the United States.
  • Annualised return on invested capital reached 17.9% compared to 15.8% last year, driven by higher operational earnings.
  • The acquisition of the majority shareholding in Flumroc on 17 November 2017 did not have a significant impact on the 2017 operational results. 
  • The proposed dividend per share is DKK 24.10, up from DKK 18.80 last year.

Full year Outlook 2018

  • Growth in net sales is expected to reach 7-10% in local currencies, including around 2% from the acquisition of Flumroc. With lower comparables, we expect higher growth rates in the first half of the year.
  • EBIT margin to reach at least 11%.
  • Investment level excluding acquisitions around EUR 230 million.