(Boursier.com) — On a comparable basis, the turnover of Saint Gobain decline of -5.8% in the 1st quarter of 2024, affected by the decline in new construction in Europe but supported by growth in the Americas and Asia-Pacific.
The Group’s prices stood at -1.1%, making it possible to generate a positive price-cost gap, thanks to great rigor in price execution and the reduction of certain raw material and energy costs. As anticipated, volumes stood at -4.7% in the 1st quarter – with a working day effect of -1.5% at Group level – an improvement on a like-for-like basis compared to the figures for the fourth quarter of 2023 (- 4.5%).
On an actual basis, turnover stood at 11.4 billion euros, with a currency effect of -0.5%. The scope effect of -2.2% reflects the optimization of the Group’s profile, in terms of disposals – notably in distribution (United Kingdom), glazing processing activities, foam insulation (United Kingdom ) and the barrier and terrace business (United States) – and acquisitions, mainly in construction chemicals (Izomaks, Adfil, Menkol Industries, Drymix, Technical Finishes, IDP Chemicals), in North America (Building Products of Canada, ICC in the United States) and in Asia-Pacific (UPTwiga in India, Hume in Malaysia).
Outlook 2024
In a geopolitical and macroeconomic environment that remains difficult, Saint-Gobain will once again demonstrate its resilience and very good operational performance in 2024, thanks to the relevance of its strategy, and its proactive actions at the commercial and industrial level which allow it to outperform its markets.
Saint-Gobain anticipates a decline in some of its markets in 2024, more marked in the first half given a high basis of comparison, with a contrasting situation between Europe and the rest of the world:
– Europe: resilience of renovation while the new construction market remains difficult before gradually reaching a low point country by country;
– Americas: maintaining good performance in construction in North America, both new and renovated; recovery expected during the year in Latin America;
– Asia-Pacific: good growth in most countries;
– High Performance Solutions: dynamic growth in Construction Chemistry, good performance in Mobility and contrasting industrial markets in terms of demand.
Despite a context that remains difficult in certain markets, Saint-Gobain is targeting a double-digit operating margin in 2024, for the 4th consecutive year