Saint-Gobain Reports Half Year Results

SAINT-GOBAIN has notified its first half year results for 2022, reporting a like-for-like sales increase of 15% on the first half 2021 and hitting a record-high of €25,481 million.

The company credits its performance to a transformation programme it has started rolling out as part of its ‘Grow & Impact’ plan.

However, Saint-Gobain reports that the Group structure impact reduced sales by 3.2% due to the ongoing optimization of the Group’s profile, in terms of both disposals (mainly Lapeyre in France, distribution in the Netherlands and Spain, specialized distribution in the UK, Glassolutions in Germany and Denmark, and pipe in China) and acquisitions (mainly Chryso in construction chemicals and Panofrance, a French specialist in modular timber solutions). Overall, since the launch of its transformation at the end of 2018, Saint-Gobain has signed or closed divestments and acquisitions representing around €6.2 billion and €3.5 billion in sales, respectively.

The integration of Chryso resulted in organic growth of 24%, an increase in EBITDA to more than €50 million in the first half (after €87 million in EBITDA over 2021 as a whole).

The acquisition of Kaycan, an exterior building materials firm in North America and Canada, is expected to close on July 29, 2022. The acquisition of GCP Applied Technologies in construction chemicals is expected to close before year-end.

Positive Price-Cost Spread

Prices increased by 15.3% over the first half year period (14.5% in the first quarter and 16.1% in the second) – in an inflationary raw material and energy cost environment – enabling the Group to generate a positive price-cost spread in the first half, it says.

Operating income hit a new record in first-half 2022, at €2,791 million, a rise of 17.5% as reported and of 13% at constant exchange rates (up 11.1% like-for-like) versus first-half 2021.

The Group’s operating margin hit another all-time high of 11% in first-half 2022 versus 10.7% in first-half 2021, a rise of 370 basis points since the start of the transformation (first-half 2018).

Benoit Bazin, Chief Executive Officer of Saint-Gobain, said: “Our excellent first-half 2022 performance reflects the profound changes made in the Group, the successful execution of our “Grow & Impact” plan, and good momentum on our underlying markets. Thanks to our comprehensive range of sustainability solutions – for energy efficiency and decarbonization of construction and industry – and extensive exposure to the renovation market, the Group is ideally positioned on robust market fundamentals.

“Over the coming quarters, we are ready to adapt as needed to the consequences of rising interest rates and inflation along with the geopolitical and energy situation in Europe. Each country CEO has designed action plans, focusing especially on margins and cash flow. In this more uncertain environment, our target is to continue to outperform our markets and our deep transformation will enable us to demonstrate greater resilience.

“Over the past three years, our teams have successfully risen to the challenges of the coronavirus pandemic, supply chain disruptions, and a strong inflationary environment. With portfolio rotation of almost €10 billion in sales since the end of 2018, and with a local organization keenly aware of immediate realities on the ground, Saint-Gobain has significantly increased its value creation.

“Against this backdrop, I am confident in the Group’s 2022 outlook which targets a further increase in operating income compared to 2021 at constant exchange rates.”

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