In the first half of 2023, the Group achieved a record margin of 11.3 per cent and a record operating profit of €2,813 million despite a challenging environment. Significant growth in operating profit was achieved in North America, Asia and emerging markets, which account for more than 60 per cent of the Group's profit.
In addition, a strong increase in free cash flow was achieved, up 30 per cent to 2,192 million euros, according to management.
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Against this backdrop, officials expect a double-digit operating margin for the full year 2023 for the third year in a row. This, in turn, underlines the group's resilience, according to officials. For the full report on the latest group figures, click here.
Saint-Gobain CEO Benoit Bazin said: "In a difficult macroeconomic environment, the Group has once again demonstrated the effectiveness of its 'Grow & Impact' strategy and the resilience of its decentralised business model. Thanks to the dynamism, entrepreneurship and commitment of our teams, we have once again achieved record results in terms of profit, margin and value creation in the first half of 2023. Our organisation by country has enabled the Group to outperform, both by proactively adapting our operations locally and by making targeted growth investments, including in additional production capacity and through acquisitions such as Building Products of Canada."
Where do Saint-Gobain's earnings come from?
Benoit Bazin: "More than 60 per cent of our revenues are now generated in North America, Asia and emerging markets, where trends are improving and growth prospects are supported by demographic trends and rapid urbanisation. In Western Europe, renovation - our largest market - continues to be very resilient, as expected, as stimulus measures and regulations aim to accelerate the path to carbon neutrality; structural demand for new buildings is increasing, even if additional financing costs are temporarily affecting the sector."
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Despite a slight short-term slowdown in the markets, Benoit Bazin said the Saint-Gobain Group would achieve a double-digit operating margin in 2023 for the third consecutive year. In the medium term, he said he is confident that the group's new profile will put it on a sustainable, profitable growth path.
