Saint-Gobain continues to grow and is insensitive to macroeconomic and geopolitical conditions-April 29, 2022 12:06

(AOF) – Saint-Gobain is offering € 56.73 on the Paris Stock Exchange, up 2.07%, with quarterly issuance. Building materials specialist sales certainly reached a new record of € 12,007 million, with comparable structures and exchange rates growing by 16.4% over the course of a year. Amount 5% higher than consensus expectations.

The Group’s performance was driven by refurbishment, especially in Europe and construction in the United States and Asia, accelerating compared to the second half of 2021 and gaining strong momentum in all segments of the Group, which recorded double-digit organic growth. It is explained that it reflects.

Thus, sales volume increased 1.9% across the quarter, but was stable in consensus. Compared to the first quarter of 2019 (precovid period), it increased by 8.3% and continues to be in good shape despite the harsh geopolitical environment.

Price increases continued to accelerate to + 14.5% in environments with significantly higher inflation costs for raw materials and energy, allowing the Group to generate positive price cost spreads in the first quarter.

Despite the difficult geopolitical environment, coupled with the ongoing disruption of the global supply chain, Saint-Gobain aims for further growth in operating profit in 2022 compared to 2021 at comparable exchange rates. I confirmed that. In the post-release conference call, the group also repeated the double-digit margin target.

“Given that the price impact is about + 10%, UBS wrote in its analysis note, which means operating results of around € 5 billion, an increase of about 6% in consensus expectations. I think. ”

AOF-Details

Key Point

-1665 Founded in 1665, the world leader in housing materials.

-Sales of € 44.2 billion, divided into five branches: Northern Europe 34%, Southern Europe and Africa (including France) 32%, Americas 13% and High Performance 15%.

-54% of activities target remodeling and infrastructure (52%), ahead of new housing (22%) or industry (10%), mobility (7%), and other industries.

-Business model based on the brand’s complete portfolio and solution-based approach: Increased productivity of construction professionals, end-user well-being, customized performance and innovation for industrial customers.

-Split capital (8.3% employees), Pierre Andre de Charender, 14 board chairs, and Benoit Bazin as general manager.

-A solid balance sheet with net liabilities of € 7.3 billion (35% of equity) and free cash flow of € 2.9 billion.

Task

-Launched October 2021 “Grow & Impact” Strategic Plan: Offering an integrated and differentiated solution for decarbonization of growth / construction / industrial investment better than the market around € 1.5 billion.

-Innovation strategies with three principles, standard forecasting, digital integration in production and customer travel, and sustainable growth: built by 20 platforms shared by industrial and construction customer businesses: smart materials, robotization , Weight reduction of materials, reduction of carbon footprint in manufacturing process … / Customer experience where 90% of sales are covered by PIM, “Digital pricing” to accelerate sales / In-house, “Digital journey” open program, Partnerships with start-ups led by Datala, NOVA… / External, Partnership Centers with Research, EAGLE, WOOL2LOOP or Optivind… Participation in projects, and co-development with customers.

-Environmental strategy integrated into product delivery, 72% of the portfolio contributes to the reduction of CO2 emissions, aiming for complete neutrality by 2050, 2030 target: 2017 in the range of 1 billion euros in industry Research on circular economy / solid oxygen fuel cells that reduce CO2 emissions by 33% and avoid R & D investment / raw material extraction in comparison.

-After a € 2 billion acquisition and a number of dispositions in 2021, a group located in the high-growth sector, especially construction chemicals, emerged.

-The integration of Chryso and Rockwool India and the completion of the bid to acquire GPC Applied Technologies.

Task

-Circular characteristics of activity, 4/5

th

Sales made in the construction sector.

-The effects of raw material and energy inflation were offset by the ability to accept higher selling prices (10.3% at 4).

th

2021 quarter);

-The total cost of repairing the Genfell Tower in London, where a local subsidiary provided covers and insulation foam, is unknown.

-After achieving record financial performance in 2021, we aim to exceed the market for sales growth, € 1.8 billion in industrial investment, and further increase in operating profit.

-2021 dividend 1.63 euros, stock repurchase 400 million euros.

Integration in construction chemistry

Construction chemistry makes it possible to decarbonize cement and concrete carbon dioxide emissions by dividing them into three or four. Therefore, Saint-Gobain chose to develop in this business. The global market for this business is estimated at 60-70 billion euros. It led two major acquisitions in this area in 2021 and competed with world leader Sika. After buying France’s Chryso (formerly Materis’ concrete and cement additive) for € 1 billion, the world leader in building materials bought an American listed on NASDAQ’s GCP Applied Technologies for € 2 billion. For Swiss Seeka, we acquired the MBCC Group with a corporate value of € 5.2 billion. The latter is much larger than GCP and has sales of € 2.7 billion, while the new acquisition of Saint-Gobain in the United States is € 1 billion.

..