Saint-Gobain Reports Record Margin and Carbon Reductions

SAINT-GOBAIN, parent company of British Gypsum, Weber, Isover, Glassolutions, Saint-Gobain PAM, and Ecophon in the UK, has reported a record operating margin of 11.0% across all regions.

EBITDA came in at €7,001 million, close to the company’s all-time high of 2022, in a context of sales worth £47,944 million, which is fall of -6.4% on the year. The company says it has shown “good resilience in sales… despite a difficult environment in new construction in Europe.”

Saint-Gobain also reports a 34% reduction in CO2 emissions against 2017 levels.

Record Margin

The company’s sales benefited from “good momentum” in the fast-growing North American, Asian and emerging markets. Saint-Gobain pinpoints the seamless integration of its acquisitions, particularly in construction chemicals, as another success. It has made 30 acquisitions globally in the last three years.

In Europe, the company highlights the RMI market which it says “will continue to show resilience”, while new construction will remain difficult. The trading report expects each country in its market “will gradually reach a low point… in a market that remains structurally healthy given its construction needs”.

This year, Saint-Gobain expects a “double-digit operating margin for the fourth consecutive year.”

Saint-Gobain CEO Benoit Bazin, said: “In a difficult macroeconomic environment with lower volumes, Saint-Gobain once again demonstrated the strength of its “Grow & Impact” strategy and of its positioning as the worldwide leader in light and sustainable construction.

“Our cost actions and well-managed pricing helped drive an improvement in the operating margin and in free cash flow generation, which both reached all-time highs.

“Supported by the impressive agility and dedication of our teams, Saint-Gobain is outperforming and demonstrating its resilience in contrasting markets.”

Sustainable Solutions

The “Grow & Impact” Strategic Plan is said to be a success, delivering on all the objectives set three years ago, on its results, cash flow and value creation.

It accounts for strong organic growth of 6.4% per annum on average, supported by a range of sustainable solutions accounting for almost three-quarters of Group sales.

The company credits ‘significant efficiency gains’ thanks to its organization by country with 90% of CEOs native to their country, resulting in proximity to customers, stronger pricing power and enhanced accountability.

Saint-Gobain also supported around 100,000 trade professionals in France in 2023 in the area of training and certification, including in the RGE (Recognized Guarantor of the Environment) certification.

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