Volume growth, efficient operations yield strong H1 and Q2 2024 sales and earnings

Report on the first half year of 2024
for ROCKWOOL A/S
Release no. 46 – 2024
to Nasdaq Copenhagen

22 August 2024

Volume growth, efficient operations yield strong H1 and Q2 2024 sales and earnings

Highlights

Sales in H1 2024 reached 1928 MEUR, an increase of eight percent in both local currencies and reported figures compared to last year, driven by higher sales in primarily Central and Eastern Europe as well as North America. The sales increase was driven by volume growth while sales prices overall remained stable.
Sales in Q2 2024 reached 1010 MEUR, an increase of 10 percent in both local currencies and reported figures compared to last year.
EBITDA in H1 2024 reached 469 MEUR, up 31 percent, yielding a 24.3 percent EBITDA margin. Earnings continued at a healthy level, as sales prices remained stable and input costs were lower compared to last year.
EBITDA in Q2 2024 reached 253 MEUR, an increase of 31 percent. The EBITDA margin was 25.1 percent.

EBIT in H1 2024 increased 44 percent to 341 MEUR, with a 17.7 percent EBIT margin, up 4.4 percentage points.
EBIT in Q2 2024 increased 42 percent to 189 MEUR, with a 18.7 percent EBIT margin, up 4.2 percentage points.
Investments reached 180 MEUR in H1 2024, up 49 MEUR from last year mainly related to the finalisation of the electrical melter conversion in Flumroc and capacity expansion for Grodan.
Cash flow from operations before financial items and tax amounted to 399 MEUR for the first half of 2024, 109 MEUR higher than in the same period last year.
Shareholders may from 22 August 2024 until 5 September 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 June 2024, the company had purchased 223 900 B shares under the share buy-back programme for a total amount of 71 MEUR.

Outlook 2024

Sales growth of around mid-single-digit percent in local currencies.
EBIT margin around 17 percent.
Investment level around 375 MEUR excluding acquisitions.

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

“I am pleased with our second quarter sales and earnings performance, where our earnings reached a record high level. These results are driven primarily by volume growth across multiple regions, stable prices, and our highly efficient operations. Volume growth was especially solid in Eastern Europe as well as North America and South Asia. The renovation and industrial sectors in Western Europe were stronger than new build construction, which remains challenged. Overall, sales grew well in Germany, Italy, Spain, and Sweden; less so in France and the UK”.

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 22 August 2024 at 14.00 CEST. The earnings call will be transmitted live on www.rockwool.com.

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