Saint-Gobain has delivered impressive results for the first half of 2024, recording a remarkable operating margin of 11.7%.
This achievement underscores the company’s ongoing strategic repositioning efforts, evidenced by three significant acquisitions that will contribute approximately €2 billion to annual sales. As Saint-Gobain continues to adapt to evolving market conditions, these results reflect its robust operational framework and commitment to sustainable growth.
The 11.7% operating margin marks a historic high for the group, showcasing not only operational efficiency but also the company’s ability to navigate complex macroeconomic landscapes. Notably, Saint-Gobain has seen a sequential improvement in volumes, indicating a positive trajectory in demand, while maintaining a stable price-cost spread. This stability in pricing amidst fluctuating costs highlights the effectiveness of Saint-Gobain’s pricing strategies and cost management initiatives.
Among the key developments in the first half of 2024 were three strategic acquisitions: CSR in Australia, Bailey in Canada, and FOSROC, a leader in construction chemicals primarily in India and the Middle East. These acquisitions are not merely financial transactions; they are integral to Saint-Gobain’s commitment to enhancing its growth profile in high-potential markets. Collectively, these companies are anticipated to add around €450 million in EBITDA, including synergies of €100 million projected by year three. More than two-thirds of the Group’s pro forma operating income is now generated in high-growth geographies, particularly in North America and emerging markets, which are significant drivers of future revenue. 
Financially, Saint-Gobain has demonstrated strong free cash flow generation, reporting €2.5 billion with a cash conversion ratio of 75%. This positions the company favorably to continue investing in growth areas while also providing returns to shareholders.
Benoit Bazin, Chairman and Chief Executive Officer of Saint-Gobain, expressed confidence in the company’s strategic direction, stating, “Our first-half results once again demonstrate the success of Saint-Gobain’s new profile…”. He highlighted the significant contributions of the company’s teams to this performance, underlining the importance of a decentralized organizational structure that emphasizes accountability and proactive management.
Looking ahead, Bazin anticipates a continuation of strong performance into the second half of 2024, projecting a double-digit operating margin for the fourth consecutive year. While acknowledging challenges in new construction markets in Europe, he remains optimistic about trading improvements in the latter part of the year, reinforcing the belief that Saint-Gobain is well-positioned for sustained growth.
Saint-Gobain’s first-half 2024 results exemplify a strategic commitment to profitable growth and operational excellence. With its focus on innovative solutions and expansion into high-growth markets, the company stands poised to navigate the complexities of the construction industry while delivering value to its stakeholders.
The full report is available here.
Source:saint-gobain with additional information added by GlassBalkan.
