Positive sales momentum and strong profitability in challenging markets

Report on the first quarter of 2024
for ROCKWOOL A/S
Release no. 23 – 2024
to Nasdaq Copenhagen

15 May 2024

Positive sales momentum and strong profitability in challenging markets

Highlights

• Sales in Q1 2024 totalled 918 MEUR, an increase of six percent in both local currencies and reported figures compared to a weak quarter last year.
  
• EBITDA in Q1 2024 reached 216 MEUR, an increase of 32 percent in reported figures compared to Q1 2023. The EBITDA margin was 23.5 percent, up 4.6 percentage points from last year. Higher volume, stable overall pricing combined with productivity gains and cost savings ensured a satisfactory earnings level.
  
• EBIT amounted to 152 MEUR in Q1 2024, an increase of 46 percent, with a 16.5 percent EBIT margin, up 4.5 percentage points from Q1 2023. EBIT includes a 6 MEUR provision for donations to the Foundation for Ukrainian Reconstruction compared to 13 MEUR in the same period last year.
  
• Investments totalled 84 MEUR in Q1 2024, including the finalisation of the electrification of the factory in Flumroc, (Switzerland).

• Annualised return on invested capital reached 21 percent, up from 16 percent in Q1 2023, primarily due to increased earnings.
  
• Shareholders may from 15 May 2024 until 30 May 2024 request conversion of A shares to B shares. For further information please refer to https://www.rockwool.com/group/about-us/investors/conversion-shares/.
  
• At the end of March 2024, the company had purchased
  105 900 B shares under the share buy-back programme for a total amount of 31 MEUR.
  

Outlook 2024

• Sales growth of around mid-single-digit percent in local currencies.
  
  
• EBIT margin around 15 percent.
  
  
• Investment level around 375 MEUR excluding acquisitions.
  

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

"First quarter sales rebounded satisfactorily, up six percent, and earnings were strong, up 46 percent. Prices have remained broadly stable during the quarter, with demand remaining solid in North America and parts of Asia. The Insulation segment performed well overall on sales and earnings, whereas performance was more challenged in the Systems segment. I am pleased that we successfully started up our new green energy technology in Switzerland – the biggest stone wool electric melter in the world. Looking ahead, we are carefully optimistic that we will see improved conditions in the industrial construction sector. We are encouraged by the EU’s adoption of the Energy Performance of Buildings Directive, which over time will increase the rate of building renovations and thus demand for insulation”.

Further information:
Kim Junge Andersen, Chief Financial Officer
ROCKWOOL A/S
+45 46 56 03 00

Earnings call:
ROCKWOOL Group will host an earnings call on 16 May 2024 at 11.00 CEST. The earnings call will be transmitted live on www.rockwool.com.

Attachment

• SE-2024-23_EN