Saint-Gobain posts 6% decline in sales in 2023

Saint-Gobain has reported sales of EUR47,944m in 2023, down 6.4 per cent from EUR51,197m in the previous year. EBITDA over the same period declined 1.7 per cent from EUR7123m to EUR7001m, while consolidated net debt fell 10.2 per cent from EUR8232m to EUR7393m. Recurring earnings per share were down 1.4 per cent from EUR6.48 in 2022 to EUR6.39 in 2023. Operating income fell 1.6 per cent YoY, coming in at EUR5251m in 2023, with an operating margin of 11 per cent, marking a new record high, compared to 10.4 per cent in the previous year. 

In the northern Europe region, sales fell 5.9 per cent in 2023 due to a sharp slowdown in new construction, while renovation, which accounts for around 55 per cent of sales, proved more resilient. The UK outperformed in a downbeat market, while Germany continued to suffer in a difficult macroeconomic environment which weighed on new construction. 

Sales in southern Europe, Middle East and Africa held up well due to the renovation market, which accounts for almost 70 per cent of sales, while new construction continued to decline. Turkey enjoyed strong growth, while the group enhanced its offering in Saudi Arabia through the acquisition of Izomaks in construction chemicals. 

In the Americas 2023 saw organic growth of 1.9 per cent with North America delivering 5.3 per cent growth, supported by good momentum in the second half of the year. Latin America was down 7.3 per cent in 2023 with the volume decline in Brazil easing towards the end of the year thanks to the strong performance of the group’s light construction solutions. Market share gains were seen in Mexico, while the group also successfully replaced 100 per cent of its natural gas with biogas at its mortars plant in Rio de Janeiro.

The Asia-Pacific region reported 5.3 per cent organic growth over 2023 with good momentum in volumes and a record operating margin at 12.6 per cent, up from 12.1 per cent in 2022. India posted another year of outperformance thanks to its comprehensive and innovative range of solutions, while in China, the group continued to capture market share and increase volumes, despite the difficult construction market. 

Capex in 2023 totalled EUR2029m with around 70 per cent of growth capex invested in North America, Asia and emerging countries. The group opened 23 new plants and production lines focussed on the fast-growing markets of construction chemicals and light construction.