Tear Sheet: Compagnie de Saint-Gobain

In the first half of 2024, like-for-like sales were down by 4.9%, mainly due to lower volumes (-3.9%) while prices reduced slightly by 1.0%, in line with our expectations. Volumes were largely impacted by the weaker new construction market in Europe, partly offset by growth in the Americas and Asia-Pacific. Despite the sales decline, the operating margin improved to a record 11.7% (from 11.3% in 2023), reflecting a positive price-cost spread, improved mix, and input-cost tailwinds. Some countries seem to have bottomed out in terms of volumes and we expect a gradual recovery in demand in 2025 as interest rates further decrease. As such, we anticipate a decline in revenues of 2%-4% in 2024, before rebounding to 5%-7% on the

...October 11, 2024 Saint-Gobain has achieved a record operating margin and strong free cash flows despite the challenging environment. In the first half of 2024, like-for-like sales were down by 4.9%, mainly due to lower volumes (-3.9%) while prices reduced slightly by 1.0%, in line with our expectations. Volumes were largely impacted by the weaker new construction market in Europe, partly offset by growth in the Americas and Asia-Pacific. Despite the sales decline, the operating margin improved to a record 11.7% (from 11.3% in 2023), reflecting a positive price-cost spread, improved mix, and input-cost tailwinds. Some countries seem to have bottomed out in terms of volumes and we expect a gradual recovery in demand in 2025 as interest rates further decrease. As such, we anticipate a decline in revenues of 2%-4% in 2024, before rebounding to 5%-7% on the back of higher residential demand and integration of the acquired businesses. We also expect Saint-Gobain will maintain a double-digit operating...

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