Saint-Gobain 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.
- Record margin of 11.3 percent and record operating income of EUR 2,813 million despite a difficult environment
- Significant operating income growth in North America, Asia and emerging countries, which represent over 60 percent of the Group’s earnings
- Strong increase in free cash flow, up 30 percent at EUR 2,192 million
- Double-digit operating margin expected in full-year 2023 for the third consecutive year, demonstrating the Group’s resilience
The full report is available here.
Benoit Bazin, Chief Executive Officer of Saint-Gobain, said, “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. Thanks to our teams’ agility, entrepreneurial spirit and dedication, 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 percent 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. 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.
“Despite a moderate slowdown in its markets in the short-term, in 2023 Saint-Gobain will deliver a double-digit operating margin for the third consecutive year. Over the medium term, I am confident that the Group’s new profile places it firmly on a sustainable profitable growth
trajectory.”