TIDMCOD
RNS Number : 3125H
Compagnie de Saint-Gobain
26 July 2023
The worldwide leader
in light & sustainable construction
Further record results in H1 2023
2023 outlook upgraded
-- Record margin of 11.3% and record operating income of
EUR2,813m despite a difficult environment
-- Significant operating income growth in North America, Asia
and emerging countries, which represent over 60% of the Group's
earnings
-- Strong increase in free cash flow, up 30% at EUR2,192m
-- Double-digit operating margin expected in full-year 2023 for
the third consecutive year, demonstrating the Group's
resilience
Benoit Bazin, Chief Executive Officer of Saint-Gobain,
commented:
"In a difficult macroeconomic environment, the Group once again
demonstrated the effectiveness of its "Grow & Impact" strategy
and the resilience of its decentralized operating model. Thanks to
our teams' agility, entrepreneurial spirit and dedication, we once
again delivered record earnings, margins, and value creation in the
first half of 2023. Our organization by country has enabled the
Group to outperform, both by proactively adapting our operations on
the ground but also by making selective growth investments,
including in additional production capacity and with acquisitions
such as Building Products of Canada.
Over 60% of our earnings are now generated in North America,
Asia and emerging countries, where trends are improving and the
growth outlook is supported by demographics and rapid urbanization.
In Western Europe, renovation - our biggest market - continues to
show good resilience as expected, with stimulus measures and
regulations aimed at accelerating the path to carbon neutrality;
structural demand for new construction is growing, even though
additional financing costs are temporarily impacting the
sector.
Despite a moderate slowdown in its markets in the short-term, in
2023 Saint-Gobain will deliver a double-digit operating margin for
the third consecutive year. Over the medium term, I am confident
that the Group's new profile places it firmly on a sustainable
profitable growth trajectory ."
A growth strategy built on sustainable solutions and
innovation
Saint-Gobain continues to outperform its markets thanks to the
pertinence of its strategic positioning at the heart of energy and
decarbonization challenges, and to the strength of its local
organization by country, which enables it to offer comprehensive
solutions to its customers.
A comprehensive range of solutions accelerating growth
Saint-Gobain's solutions for renovation, the building envelope
and innovative new light construction methods drastically reduce
CO(2) emissions while increasing user wellbeing (thermal and
acoustic comfort, light, air quality and hygiene). Each country CEO
has adopted a specific local approach:
- In France, "Saint-Gobain Solutions" is organized by market and
provides comprehensive offers for commercial buildings, educational
and healthcare facilities, and multi-family housing (social housing
associations, developers and condominiums).
As the leading player in the value chain, Saint-Gobain organized
the first "Sustainable Construction Talks" in Paris on July 4, 2023
on the theme "Global and sustainable renovation: why and how to
accelerate?", which followed the publication in April of the first
international Barometer on the transformation of construction. The
Group also showcased its comprehensive range of solutions in three
"white papers" published during the first half of the year on
educational and healthcare facilities and on the renovation of
multi-family housing.
Thanks to these efforts, the Group is capturing market share on
major building projects with environmental certification (HQE,
BREEAM, LEED, BBC Effinergie, NF Habitat), where the value of our
comprehensive offers is approximately twice as high as for
traditional projects. The current renovation of Le Carré des
Invalides in Paris featuring 10 Saint-Gobain solutions is an
excellent example of such sustainable and low-carbon
construction.
- In Poland, the "Saint-Gobain Solutions" organization set up at
the end of 2022 and bringing together all local brands, encourages
the development of systems and cross-selling in key segments such
as premium multi-family housing, sports complexes, and educational
and healthcare facilities. During the first half of 2023, the
"Copernican Revolution Lab" for innovation was unveiled in Warsaw.
It features numerous solutions developed by the Group: Isover
insulation, Rigips plasters, Weber mortars, Ecophon ceilings and
Vetrotech fire-resistant glazing. The Group is also set to launch a
digital tool that will allow developers to build housing from
prefabricated components using Saint-Gobain's comprehensive
solutions.
- In India, Saint-Gobain is enhancing its proximity to the end
customer with a network of soon 100 "MyHome by Saint-Gobain"
showrooms for consumers. For multi-family housing, Saint-Gobain is
offering a comprehensive solution as part of the "Modern Homes"
program, which features solutions based on glass (windows,
balconies, shower doors), plaster and plasterboard (ceilings,
interior walls), and construction chemicals. Thanks to this global
solutions-based approach, the Group has captured market share,
notably winning bids on 35 major non-residential projects. The
"Central Vista" mega-project in New Delhi is testimony to these
efforts, with 11 Saint-Gobain solutions used.
- In Mexico, a central specification team promoting our
comprehensive offer is accelerating sales synergies between
products (glass, plasterboard, glass wool, construction chemicals),
with 50 multi-solution and façade projects in the first half
(versus 64 projects for the whole of 2022). The brand-new Waldorf
Astoria hotel in Cancun, for example, brings together the Group's
light construction solutions. Lastly, in early 2023, Mexico
launched a consulting service recommending Saint-Gobain's solutions
to homebuilders.
A sustainable, innovative offer
Innovation at Saint-Gobain follows five transversal axes:
- Decarbonizing production processes:
-- After achieving the world's first-ever zero-carbon (scope 1
and 2) production of glass in 2022, Saint-Gobain delivered another
world-first in March 2023, producing glass with a furnace powered
by over 30% hydrogen at its Herzogenrath site in Germany, which
will allow a reduction of up to 70% in direct CO(2) emissions
(scope 1).
-- The world's first-ever zero-carbon (scope 1 and 2)
plasterboard production began in April 2023 at Saint-Gobain's
Fredrikstad plant in Norway.
-- Saint-Gobain has raised its internal carbon prices - in force
since 2016 - from EUR75 to EUR100 per ton for capex investments and
from EUR150 to EUR200 per ton for R&D projects.
-- The Group uses artificial intelligence (AI) and algorithms to
help improve its industrial performance and reduce its energy
consumption. In a glass plant, production metrics are analyzed and
optimized in real time using data coming from the installation of
over 400 sensors.
- Light construction systems:
-- Glasroc(R) X: the Group has developed a plasterboard
reinforced by Adfors fiber glass mat, containing special additives
for moisture resistance, making it ideal for external applications.
The plasterboard is now manufactured at 23 sites across the globe,
and has a carbon footprint two to three times lighter than
traditional alternatives.
-- One Precision Assemblies (OPA): in May 2023 in the US,
Saint-Gobain launched its first-ever prefabricated residential
construction solution for walls, floors, ceilings and roofing.
- Sustainable solutions protecting natural resources:
-- In February 2023 in France, Saint-Gobain launched "Les
Engagés", a comprehensive range of sustainable low-carbon solutions
including for example Novelio(R) wall coverings, Isover GR 32
insulation, Placo(R) Infini 13 plasterboard (with over 50% recycled
content), Webercol Flex Eco adhesives (offering a 50% reduction in
CO(2) emissions) and COOL-LITE(R) XTREME ORAÉ(R) , which combines
ORAÉ(R) low-carbon glass with high-performance thermally insulating
coatings, enabling a 42% reduction in its carbon footprint.
-- Weber mortars continue to replace cement (e.g., with blast
furnace slag or fly ash) and sand (with construction demolition
materials or excavated earth).
-- Lastly, the Group's February 2023 acquisition of Asphaltica
and its asphalt shingle recycling technology for roofing in the US
gives added impetus to initiatives promoting the circular
economy.
- Materials and solutions to conquer new markets:
-- Ecocem and Saint-Gobain recently announced that they would be
partnering to develop and market low-carbon solutions for binders,
concretes and mortars.
-- CarbiCrete: at the "ChangeNOW" summit in May 2023,
Saint-Gobain announced it had signed a partnership agreement with
Canadian start-up CarbiCrete to manufacture cement-free,
carbon-sequestering concrete blocks.
-- Development of innovative solutions based on high-performance
polymers and ceramics, for example for hydrogen transport and
fire-protection for batteries in electric vehicles.
- Digital tools developed to best serve customers:
-- Artificial intelligence is increasingly being used to deepen
our customer knowledge, with marketing segmentation and the
introduction of pricing strategies incorporating
recommendation-based models to support decision-making.
-- Digital services are available to our professional customers
to facilitate their day-to-day and improve their productivity. The
TOLTECK app for managing quotes and bills is used every day in
France by more than 23,000 trade professionals, while the SOLU+ app
makes it possible to easily estimate cost and scale building
projects and then send the order to an outlet in just one click.
Lastly, the CAP RENOV+ solution simulates over 20,000 renovation
projects every month in France, giving value to the associated
gains in comfort and energy savings, and integrating the government
aid compatible with a given project.
-- Digitalization is an opportunity to provide value-added
services all along the value chain. In Vietnam, 4 million QR codes
have been printed on products, helping to optimize deliveries and
offer a personalized customer experience.
-- An experts' hub of 150 data scientists supports these initiatives.
Group operating performance
First-half 2023 once again demonstrated the Group's resilience
with a record operating margin of 11.3% .
Like-for-like sales rose 1.6% versus first-half 2022, driven by
High Performance Solutions, Asia-Pacific and the upturn in trading
in North America. In an environment that remains inflationary, the
Group continues to effectively serve and support its customers
while managing energy and raw material cost evolution. Prices were
up by 7.9% over the period (up 10.2% in the first quarter and up
5.9% in the second quarter, reflecting sequential price stability),
owing to price increases implemented last year and certain
additional measures taken locally, generating a positive price-cost
spread overall.
As expected, volumes contracted, down 6.3% over the first half
(down 7.0% in the second quarter including a negative working day
effect of around 2%), with a moderate slowdown in markets
reflecting a contrasting situation: a marked decline in new
construction but good resilience overall in renovation. In each
local market, the Group is taking the proactive commercial and
industrial measures necessary to continue to outperform its markets
and maintain its excellent operating performance. Action plans are
implemented by country CEOs to adapt to their environment and
optimize in real time their P&Ls: commercial efficiency to
outperform the market and adaptation of costs where needed
(optimization of production capacities, fixed and variable costs
and discretionary expenses).
On a reported basis, sales were down by 2.1% to EUR 25.0
billion, with a negative currency impact of 1.4%. The Group
structure impact reduced sales by 2.3% and results from the ongoing
optimization of the Group's profile, both in terms of disposals -
mainly in distribution (UK, Poland and Denmark), glass processing
activities, Crystals & Detectors and ceramics for the steel
industry - and in terms of acquisitions, mainly in construction
chemicals (GCP Applied Technologies "GCP", Impac in Mexico, Matchem
in Brazil and Best Crete in Malaysia), exterior products (Kaycan in
North America) and insulation (U.P. Twiga in India). The
integration of recent acquisitions is progressing well.
Operating income hit a new record in first-half 2023 at EUR2,813
million, a rise of 2.1% at constant exchange rates versus
first-half 2022.
The Group's operating margin hit another record-high of 11.3% in
first-half 2023, versus 11.0% in first-half 2022, thanks notably to
the rollout of initiatives set out in its "Grow & Impact" plan:
an optimized business profile (one-third of sales rotated since
2018), increased pricing power (high added-value solutions provided
to our customers and constant focus on the price-cost spread) and
various proactive measures to adapt to local markets.
Segment performance (like-for-like sales)
Northern Europe: record margin despite a limited decline in
sales thanks to better resilience in renovation
Sales in the Northern Europe Region were down by 3.7% over the
first half amid a marked slowdown in new construction, while
renovation (around 55% of sales) proved more resilient. After
several quarters of slowing volumes, the volume decline in the
second quarter was identical to the decline in the first quarter at
a comparable number of days. The operating margin for the Region
came in at a new record-high of 8.6% (versus 8.2% in first-half
2022), thanks to an optimized business profile, well-managed
pricing and proactive cost adjustments amid a downturn in
volumes.
Nordic countries held firm thanks to their presence across the
construction value chain, despite a clear downturn in the new
construction market, particularly in Sweden. In April, Saint-Gobain
inaugurated the world's first carbon-neutral (scope 1 and 2)
plasterboard production at its Fredrikstad plant in Norway. The UK
progressed on the back of market share gains in façade and interior
solutions, and also benefited from an optimized portfolio following
the divestments of its distribution businesses. Germany and Eastern
Europe suffered in a context of high inflation and a rapid rise in
interest rates which weighed on new construction.
Southern Europe - Middle East & Africa: increase in sales
supported by resilience in renovation and a good margin level
The Southern Europe - Middle East & Africa Region saw a 2.6%
rise in sales, driven by prices and by good resilience in
renovation (almost 70% of sales), while the new construction market
slowed. The Region posted a strong operating margin, at 8.6%
(versus 8.9% in first-half 2022), thanks to good management of raw
material and energy cost inflation and proactive management of
costs and industrial efficiency.
France continued to benefit from its strong exposure to the
renovation market, which remained at a good level despite cost
inflation in a favorable regulatory environment. The announcement
by the French government in mid-July of a 66% rise in the
MaPrimeRénov' household renovation stimulus package to EUR4 billion
in 2024 illustrates the country's commitment to accelerate
energy-efficiency renovation of existing buildings and to reduce
CO(2) emissions in the construction sector. Saint-Gobain's position
as a benchmark across the entire renovation value chain enabled it
to report further substantial gains in market share. The rollout of
low-carbon solutions is accelerating, helping the Group's customers
to meet their environmental goals. Lastly, the introduction on May
1, 2023 of the Extended Producer Responsibility (EPR) allows
Saint-Gobain to leverage its technological and organizational
recycling and repurposing expertise.
In Spain, business was driven by good momentum in construction
markets overall, while in Italy, renovation remained robust thanks
to the continuation of the government's "Superbonus" scheme. Middle
East and Africa posted strong growth, led by Egypt and Turkey.
Since the beginning of the year, the Group has continued to
optimize its presence in the Region, signing an agreement to sell
its glass processing business in Portugal and undertaking growth
investments in Egypt in construction chemicals (acquisition of
Drymix and inauguration of a site producing adhesives and
waterproofing) and in Turkey by merging with Dalsan to create a
leader in plaster and plasterboard.
Americas: sales growth and record margin
The Americas delivered 3.4% organic growth over first-half 2023,
buoyed by an upturn in North America in the second quarter. The
Region's operating income hit a new record-high, resulting in an
operating margin of 17.8% (up from 16.9% in first-half 2022),
mainly supported by the upturn in volumes in the US during the
second quarter.
- North America progressed by 5.5% over first-half 2023 (up
15.8% as reported, with the integration of Kaycan and GCP's
waterproofing membranes), supported by its comprehensive range of
interior and exterior light construction solutions. The new
construction market has stabilized over the last six months with
positive signs towards the end of the period. Growth in the Region
accelerated in the second quarter at 9.6%, with market share gains
for the roofing and siding businesses thanks to highly successful
cross-selling strategies.
The signature in June of an agreement to acquire Building
Products of Canada in roofing will allow Saint-Gobain to reinforce
its leadership in Canada, with a comprehensive range of interior
and exterior solutions.
In light of the favorable market outlook, in early July the
Group announced a USD 235 million investment to double the
production capacity of its gypsum facility in Florida - one of the
most dynamic areas in the US. Lastly, the introduction of the
Inflation Reduction Act (IRA) plays a role both indirectly -
through the creation of jobs that will result in additional demand
for housing - and directly, with insulating products having been
eligible for a tax credit since January 1, 2023 owing to their role
in the energy transition.
- Latin America was down by 2.5% in a macroeconomic environment
that remains difficult in Brazil owing to high interest rates.
Mexico benefited from the successful integration of Impac in
construction chemicals, with an acceleration in sales synergies in
distribution networks, and plans to invest in a new Chryso plant at
its Impac site in Monterrey. The other countries in the Region were
driven by an increase in sales prices, an enriched offer and mix,
and a geographic footprint and product range extended by bolt-on
acquisitions. Thanks to the successful integration of Termica San
Luis, a leader in insulation in Argentina, Saint-Gobain has
consolidated its strong operating performance in the country.
As of May 2023, the Group's three glass facilities in Brazil
have replaced 8% of their natural gas consumption with biogas. In
Mexico, the Cuautla glass facility now uses 100% solar electricity
alongside natural gas.
Asia-Pacific: good sales momentum and a very good margin
level
The Asia-Pacific Region reported 6.4% organic growth and a
strong 12.5% operating margin (12.7% in first-half 2022).
India delivered a good performance against a high comparison
basis in first-half 2022, on the back of market share gains, an
integrated and innovative range of solutions, the successful
integration of recent acquisitions in insulation (Rockwool India
Pvt Ltd. and U.P. Twiga) and the start-up of new capacity, notably
in glass. Saint-Gobain continues to play a pioneering role in
promoting "green" buildings in the country by offering its
sustainable construction solutions. Particularly noteworthy was the
first-ever production of low-carbon glass in the country in June
2023, allowing a 40% reduction in CO(2) emissions (scope 1 and 2)
through the use of two-thirds recycled materials as well as green
electricity used alongside natural gas. After ongoing disruptions
from Covid at the start of the year, China reported good growth. In
the second quarter the Group unveiled its fourth plasterboard
facility and fifth gypsum factory in the country, in Yuzhou (Henan
province), to respond to strong demand for these light materials as
a replacement for more traditional building materials: like the
Group's other gypsum plants in China, this new site uses
carbon-free electricity. South-East Asia saw sales progress owing
to the continued diversification of its range of light solutions,
and continued to strengthen its position on the light construction
market in Malaysia with the acquisition of Hume.
High Performance Solutions (HPS): good sales growth and
sequential improvement in margin
HPS achieved 6.4% organic growth over first-half 2023,
benefiting from its strong innovation capabilities, a recovery in
the European automotive market, and a good level of sales prices.
The operating margin came in at 12.3%, down slightly year-on-year
owing to the negative mix effect in Mobility, but up sharply on a
sequential basis (11.1% in second-half 2022).
- Businesses serving global construction customers saw sales
grow by over 40% as reported, due mainly to the GCP integration.
The upbeat trends in Chryso and GCP sales continued, spurred by the
innovation drive for decarbonization in the construction sector,
notably with the CO2ST(R) and EnviroMix(R) solutions for developing
cement and concrete mixes with a much lighter carbon footprint.
Chryso continued to enjoy strong growth in emerging countries,
leveraging Saint-Gobain's presence in Brazil to accelerate its
expansion through the Matchem acquisition, and in India benefiting
from the construction of a fifth site in record time. The new
Construction Chemicals organization including GCP has been in place
since the end of 2022 and is successfully deploying all expected
synergies. In contrast, Adfors reinforcement solutions were down
against a high comparison basis.
- Mobility saw a strong rise in sales, buoyed by a gradual
catch-up in sales prices, an outperformance linked to its strong
technological positioning on electric vehicles, and a rebound in
volumes in Europe. Momentum remains favorable in the Americas and
Asia.
- Businesses serving Industry were driven by sales prices and
the demand for cutting-edge materials and decarbonization
technologies, despite a mixed situation on industrial markets.
These businesses are reaping the rewards of their digital
transformation, in particular with the implementation of "digital
twins" - allowing industrial operations to be modelled using
AI-based algorithms and energy savings of up to 10% - along with
digital simulation services helping customers increase their
productivity using virtual reality platforms.
Analysis of the consolidated financial statements for first-half
2023
The unaudited interim consolidated financial statements for
first-half 2023 were subject to a limited review by the statutory
auditors and adopted by the Board of Directors on July 26,
2023.
in EUR million H1 2022 H1 2023 % change
Sales 25,481 24,954 -2.1%
Operating income 2,791 2,813 0.8%
Operating margin 11.0% 11.3%
Operating depreciation and amortization 992 980 -1.2%
Non-operating costs -100 -55 45.0%
EBITDA 3,683 3,738 1.5%
Capital gains and losses on disposals,
asset write-downs and impact of
changes in Group structure -198 -464 -134.3%
Business income 2,493 2,294 -8.0%
Net financial expense -194 -196 -1.0%
Dividends received from investments 1 1 n.s.
Income tax -530 -607 -14.5%
Share in net income of associates 4 3 n.s.
Net income before non-controlling
interests 1,774 1,495 -15.7%
Non-controlling interests 50 45 -10.0%
Net attributable income 1,724 1,450 -15.9%
Earnings per share(2) (in EUR) 3.34 2.84 -15.0%
Recurring net income(1) 1,814 1,821 0.4%
Recurring(1) earnings per share(2)
(in EUR) 3.51 3.57 1.7%
EBITDA 3,683 3,738 1.5%
Depreciation of right-of-use assets -350 -340 2.9%
Net financial expense -194 -196 -1.0%
Income tax -530 -607 -14.5%
Capital expenditure(3) -590 -616 4.4%
o/w additional capacity investments 241 274 13.7%
Changes in working capital requirement(4) -574 -61 89.4%
Free cash flow(5) 1,686 2,192 30.0%
Free cash flow conversion(6) 51% 65%
ROCE 15.3% 15.7%
Lease investments 395 442 11.9%
Investments in securities net of
debt acquired(7) 283 228 -19.4%
Divestments 79 857 n.s.
Consolidated net debt 8,276 8,922 7.8%
------------------------------------------- -------- ---------
1. Recurring net income = net attributable income excluding
capital gains and losses on disposals, asset write-downs and
material non-recurring provisions.
2. Calculated based on the weighted average number of shares
outstanding (510,080,726 shares in 2023, versus 516,797,123 shares
in 2022).
3. Capital expenditure = investments in tangible and intangible assets.
4. Changes in working capital requirement over a rolling
12-month period (see Appendix 4, bottom of "Consolidated cash flow
statement").
5. Free cash flow = EBITDA less depreciation of right-of-use
assets, plus net financial expense, plus income tax, less capital
expenditure excluding additional capacity investments, plus change
in working capital requirement over a rolling 12-month period.
6. Free cash flow conversion ratio = free cash flow divided by
EBITDA, less depreciation of right-of-use assets.
7. Investments in securities net of debt acquired = EUR228
million in 2023, of which EUR120 million in controlled
companies.
EBITDA climbed to a record EUR3,738 million, while the EBITDA
margin also hit a record-high of 15.0% (14.5% in first-half
2022).
Non-operating costs were EUR55 million versus EUR100 million in
first-half 2022. The net balance of capital gains and losses on
disposals, asset write-downs and the impacts of changes in Group
structure represented an expense of EUR464 million (versus an
expense of EUR198 million in first-half 2022). It reflects EUR150
million in asset write-downs and Purchasing Price Allocation (PPA)
intangible amortization, and EUR314 million in disposal losses and
impacts relating to changes in Group structure, mainly translation
adjustments on divested UK distribution assets.
Recurring net income hit an all-time high of EUR1,821 million
.
The tax rate on recurring net income was 25%.
Capital expenditure represented EUR616 million (EUR590 million
in first-half 2022). Maintenance capex has been optimized as
planned and reallocated to growth capex (up 14%) in selected
markets. Over the past 12 months, the Group has opened 23 new
plants and production lines to strengthen its leading positions in
high-growth markets for sustainable construction, especially in
construction chemicals - in Asia (India and China), Africa &
Middle East (Nigeria, Morocco, Egypt and Oman) and Europe (Italy
and a 3D printing facility in the Czech Republic) - along with
façade and light construction solutions (India, China and
Spain).
Free cash flow was at EUR2,192 million (8.8% of sales) - a rise
of 30% versus first-half 2022 - with a free cash flow conversion
ratio of 65% (51% in first-half 2022). This was attributable to the
slight increase in EBITDA and to very good management of operating
working capital requirement (WCR), which represented 25 days' sales
at end-June 2023 versus 26 days' sales at end-June 2022.
Investments in securities net of debt acquired totaled EUR 228
million (EUR283 million in first-half 2022), primarily reflecting
acquisitions in plasterboard (Dalsan in Turkey) and in insulation
(U.P. Twiga in India and Termica San Luis in Argentina).
Divestments totaled EUR857 million (EUR79 million in first-half
2022), primarily reflecting the sale of the UK distribution
business for EUR803 million.
Net debt amounted to EUR8.9 billion at June 30, 2023. It
represents 38% of consolidated equity versus 36% at end-June 2022.
The net debt to EBITDA ratio on a rolling 12-month basis remained
stable versus June 30, 2022, at 1.2.
2023 outlook
In a difficult macroeconomic environment, Saint-Gobain continues
to demonstrate its resilience and its strong operating performance
thanks to its focused strategy and its proactive commercial and
industrial initiatives. The Group continues to focus on developing
sustainable and innovative solutions with a positive impact,
supported by strong innovation and investments for growth.
2023 will therefore mark another successful year for
Saint-Gobain, with the continued implementation of its "Grow &
Impact" priorities.
The Group confirms its assumptions for its markets in 2023, with
contrasting trends: a marked decline in new construction in certain
regions but good resilience overall in renovation, and is raising
its operating margin guidance.
Amid a moderate market slowdown, Saint-Gobain is now targeting
for full-year 2023 a double-digit operating margin, for the third
consecutive year.
For second-half 2023, the Group is targeting an operating margin
of between 9% and 11%, in line with the "Grow & Impact"
strategic plan target.
Financial calendar
An information meeting for analysts and investors will be held
at 8:30am (GMT + 1) on July 27, 2023 and will be streamed live on
Saint-Gobain's website: www.saint-gobain.com/
- Site visits for investors and analysts: September 21 and 22,
2023 in the US (Boston region) and November 13 and 14, 2023 in
France (Paris region).
- Sales for the third quarter of 2023: October 26, 2023, after
close of trading on the Paris stock market.
Glossary :
- Indicators of organic growth and like-for-like changes in
sales/operating income reflect the Group's underlying performance
excluding the impact of:
-- changes in Group structure, by calculating indicators for the
year under review based on the scope of consolidation of the
previous year (Group structure impact);
-- changes in foreign exchange rates, by calculating indicators
for the year under review and those for the previous year based on
identical foreign exchange rates for the previous year (impact at
constant exchange rates);
-- changes in applicable accounting policies.
- EBITDA margin = EBITDA divided by sales.
- Operating margin = operating income divided by sales.
- ROCE (Return on Capital Employed) = operating income for the
period adjusted for changes in Group structure, divided by segment
assets and liabilities at period-end.
- Purchase Price Allocation (PPA) = the process of assigning a
fair value to all assets and liabilities acquired and of allocating
the residual goodwill as required by IFRS 3 (revised) and IAS 38
for business combinations. PPA intangible amortization relates to
amortization charged against brands, customer lists, and
intellectual property, and is recognized on a separate line, "Other
operating expenses and asset impairment".
- Building labels: HQE (High Environmental Quality), BREEAM
(Building Research Establishment Environmental Assessment Method),
LEED (Leadership in Energy and Environmental Design), BBC
Effinergie (Low-Consumption Building) and NF Habitat.
All indicators contained in this press release (not defined in
the footnotes) are explained in the notes to the interim financial
statements available by clicking here:
https://www.saint-gobain.com/en/finance/regulated-information/half-yearly-financial-report
Net debt Note 10
EBITDA Note 5
Non-operating costs Note 5
Operating income Note 5
Net financial expense Note 10
Recurring net income Note 5
Business income Note 5
Working capital requirement Note 5
Important disclaimer - forward-looking statements:
This press release contains forward-looking statements with
respect to Saint-Gobain's financial condition, results, business,
strategy, plans and outlook. Forward-looking statements are
generally identified by the use of the words "expect",
"anticipate", "believe", "intend", "estimate", "plan" and similar
expressions. Although Saint-Gobain believes that the expectations
reflected in such forward-looking statements are based on
reasonable assumptions as at the time of publishing this document,
investors are cautioned that these statements are not guarantees of
its future performance. Actual results may differ materially from
the forward-looking statements as a result of a number of known and
unknown risks, uncertainties and other factors, many of which are
difficult to predict and are generally beyond Saint-Gobain's
control, including but not limited to the risks described in the
"Risk Factors" section of Saint-Gobain's Universal Registration
Document and the main risks and uncertainties presented in the
half-year 2023 financial report, both documents being available on
Saint-Gobain's website ( www.saint-gobain.com ). Accordingly,
readers of this document are cautioned against relying on these
forward-looking statements. These forward-looking statements are
made as of the date of this document. Saint-Gobain disclaims any
intention or obligation to complete, update or revise these
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by applicable laws
and regulations. This press release does not constitute any offer
to purchase or exchange, nor any solicitation of an offer to sell
or exchange securities of Saint-Gobain.
For further information, please visit www.saint-gobain.com
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END
IR QQLFLXDLBBBD
(END) Dow Jones Newswires
July 26, 2023 12:49 ET (16:49 GMT)
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