Saint-Gobain reported that it continues to outperform its markets thanks to the pertinence of its strategic positioning at the heart of energy and decarbonization challenges, and to the strength of its local organization by country, which enables it to offer comprehensive solutions to its customers.
The first half of 2023 once again demonstrated the group's resilience with a record operating margin of 11.3%. Like-for-like sales rose 1.6% versus the first half of 2022, driven by high-performance solutions, Asia-Pacific and the upturn in trading in North America. In an environment that remains inflationary, the group continues to effectively serve and support its customers while managing energy and raw material cost evolution. Prices were up by 7.9% over the period (up 10.2% in the first quarter and up 5.9% in the second quarter, reflecting sequential price stability), owing to price increases implemented last year and certain additional measures taken locally, generating a positiveprice-costspread overall.
Key takeaways
- Record margin of 11.3% and record operating income of €2,813m despite a difficult environment.
- Significant operating income growth in North America, Asia and emerging countries, which represent over 60% of the group's earnings.
- Strong increase in free cash flow, up 30% at €2,192m.
- Double-digit operating margin expected in full-year 2023 for the third consecutive year, demonstrating the group's resilience.
Saint-Gobain's response
"In a difficult macroeconomic environment, the group once again demonstrated the effectiveness of its Grow & Impact strategy and the resilience of its decentralized operating model," says Benoit Bazin, CEO, Saint-Gobain. "We once again delivered record earnings, margins and value creation in the first half of 2023. Our organization by country has enabled the group to outperform, both by proactively adapting our operations on the ground but also by making selective growth investments, including in additional production capacity and with acquisitions such as Building Products of Canada."
"Over 60% of our earnings are now generated in North America, Asia and emerging countries, where trends are improving and the growth outlook is supported by demographics and rapid urbanization," says Bazin. "In Western Europe, renovation - our biggest market - continues to show good resilience as expected, with stimulus measures and regulations aimed at accelerating the path to carbon neutrality; structural demand for new construction is growing, even though additional financing costs are temporarily impacting the sector."
