Tear Sheet: Compagnie de Saint-Gobain

In the first quarter of 2024, like-for-like basis sales were down by 5.8%, mainly due to a volume decline in Europe. Prices reduced slightly by 1.1%, in line with our expectations. However, the company maintained a positive price-cost spread over that period. Some European economies have reached the trough and we expect they will gradually recover from the second half of 2024, supported by potential interest rate cuts. We anticipate a decline in revenues of 2%-5% in 2024. We also expect Saint-Gobain will maintain a double-digit operating margin, translating into an S&P Global Ratings-adjusted EBITDA margin of about 14.0%-14.5% this year, from 14.6% in 2023. We believe Saint-Gobain will continue to benefit from its strong geographical and product diversification, as

...May 16, 2024 Compagnie de Saint-Gobain's (Saint-Gobain's) performance remains resilient amid challenging market conditions, especially in Europe. In the first quarter of 2024, like-for-like basis sales were down by 5.8%, mainly due to a volume decline in Europe. Prices reduced slightly by 1.1%, in line with our expectations. However, the company maintained a positive price- cost spread over that period. Some European economies have reached the trough and we expect they will gradually recover from the second half of 2024, supported by potential interest rate cuts. We anticipate a decline in revenues of 2%-5% in 2024. We also expect Saint-Gobain will maintain a double-digit operating margin, translating into an S&P Global Ratings-adjusted EBITDA margin of about 14.0%-14.5% this year, from 14.6% in 2023. We believe Saint-Gobain will continue to benefit from its strong geographical and product diversification, as well as its positioning toward decarbonization and insulation needs. Slightly...

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