2024-02-17 10:40:00 ET
Summary
- Rockwool's revenue was impacted by a slowdown in construction and renovation activities, but its EBIT and EBIT margin increased due to lower energy prices.
- The company continues to invest in expansion, with a net free cash flow of 12.7 EUR per share after including growth capex.
- Rockwool expects stable revenue in the current financial year with an EBIT margin of around 13%.
Introduction
Rockwool A/S (RKWBF) is a Danish company focusing on the production of insulation, which accounts for 77% of its total revenue. That was a problem in 2023 as the sharp increase in inflation and key interest rates reduced the demand for insulation products as fewer homes were built or renovated. Interestingly, the company's margin widened as Rockwool reported a higher EBIT on a lower revenue....
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Rockwool: Insulation Producer Trading At A 6.9% Free Cash Flow Yield