Saint-Gobain: First half 2024 results

• Record operating margin of 11.7% 

• Sequential improvement in volumes 

• Positive price-cost spread with prices stable sequentially 

• Three strategic acquisitions focused on profitable growth: CSR, Bailey and FOSROC, together adding around €2bn to full-year sales and around €450m in EBITDA (including €100m of synergies in year 3) 

• More than 2/3 of the Group’s pro forma operating income is now generated in highgrowth geographies: North America, Asia and emerging countries 

• Strong free cash flow generation of €2.5bn, with a cash conversion ratio of 75% 

• Double-digit operating margin expected for H2 and full-year 2024, for the fourth consecutive year

Benoit Bazin, Chairman and Chief Executive Officer, said, “Our first-half results once again demonstrate the success of Saint-Gobain’s new profile, reflecting the Group’s ability to adapt to different macroeconomic environments and to continue to outperform. The roll-out of our comprehensive range of sustainable and innovative solutions and the resulting enhancement in our mix, together with our decentralized organization by country with accountability on commercial performance and on proactive cost management, have enabled us to deliver a new record operating margin and strong free cash flow generation. I am very grateful for our teams’ dedication and their contribution to the Group’s consistent improvement in its performance.

“Since the start of the year, Saint-Gobain has accelerated efforts to reinforce its profitable growth profile with three landmark acquisitions in light and sustainable construction: CSR in Australia, Bailey in Canada and FOSROC in construction chemicals, mainly in India and the Middle East. Pro forma for these changes in structure, more than two-thirds of Group operating income is now generated in North America, Asia and emerging countries, areas that enjoy strong structural growth and where Saint-Gobain is achieving an excellent performance. New construction markets remain difficult in Europe but are nearing a low point and we expect trading to continue to improve in the second half. I am confident that 2024 will be another successful year for Saint-Gobain, with a double-digit operating margin in the second half and over the full year, for the fourth consecutive year.”

The full report is available here.